Partners Group's Rob Collins - The how and why of evergreens: one of the most exciting trends in private markets

Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is one of evergreen importance. We talk with one of the pioneers in the evergreen fund space.

Rob Collins, a Partner, Co-Head of Private Wealth, and Head of the New York office and a member of the Global Executive Board at Partners Group, a $147B+ AUM alternative asset manager, joins the podcast to discuss how Partners Group started the evergreen fund space in the early 2000s.

Rob has deeply evolved perspectives on both evergreen funds and working with the wealth channel. He leads Partners Group’s US private wealth and defined contribution practice and is President, Portfolio Manager, and Member of the Board of Managers of Partners Group Private Equity (Master Fund), LLC. He also chairs Partners Group USA’s Investment Committee. He joined the firm in 2005, only 4 years after Partners Group was the first firm to launch an evergreen private equity structure.

Rob and I had a fascinating conversation about what evergreen funds are, the mechanics of how they work, and why they can make sense for investors – both individual and institutions. We discussed:

• What Partners Group saw in the early 2000s that made them decide to create the evergreen private equity fund structure.
• Why it’s taken the industry time to adopt evergreen funds.
• How to think about returns with evergreen funds.
• Why institutions — in addition to wealth advisors — have used evergreen funds.
• Why the time, money, and liability questions of private equity fund investments make evergreens a fit for many advisors.
• The importance of compounding and how it relates to evergreen funds.
• The challenges and nuances with managing evergreen funds.
• Why “life is too short for capital calls.”
• How does private equity go from being sold to being bought?
• What can the industry do to continue to remove pain points for the wealth channel?

Thanks Rob for coming on the show to share your thoughts and wisdom on private markets and the importance of one of the biggest trends in private markets, evergreen funds. We hope you enjoy.

Show Notes
00:00 Introduction to Ultimus Fund Solutions

01:18 Podcast Opening and Theme Song

01:52 Welcome to Alt Goes Mainstream

01:59 Introducing Rob Collins and Evergreen Funds

02:24 Rob Collins' Background and Role at Partners Group

04:18 Growth and Innovation at Partners Group

05:46 Evergreen Solutions for Clients

07:02 The Importance of Flexibility in Evergreen Funds

09:56 Evergreen Funds vs. Traditional Structures

11:38 The Rise of Evergreen Funds

29:48 Challenges and Risks of Evergreen Structures

30:01 Balancing Growth and Performance in Evergreen Funds

34:57 Challenges for General Partners

35:40 Expanding with New Products

36:23 Trends in Private Markets

36:56 Evergreen Funds and Private Companies

37:27 Life is Too Short for Capital Calls

38:52 Shift from Public to Private Markets

40:24 Liquidity in Evergreen Funds

41:50 Building a Resilient Diversified Portfolio

43:05 Managing Investor Expectations

44:26 Control in Portfolio Construction

46:48 Positioning Evergreen Funds

52:13 Evergreen vs. Closed-End Funds

54:43 Innovating Asset Allocation Frameworks

57:12 Educating Distribution Professionals

01:00:26 Consultative Sales Approach for Evergreen Sales Professionals

01:02:03 Future Growth in Private Markets

01:03:47 Rob’s Favorite Alternative Investment

01:04:42 Conclusion and Final Thoughts

A word from AGM podcast sponsor, Ultimus Fund Solutions

This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.

To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.

Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [e-mail].

We thank Ultimus for their support of alts going mainstream.