Photo courtesyPaula Campbell Roberts Chief Investment Strategist at KKR
KKR announced the appointment of Paula Campbell Roberts as Chief Investment Strategist for Private Wealth. In this newly created role, Roberts will work closely with KKR’s Global Macro, Balance Sheet and Risk team to deliver actionable investment insights to KKR’s private wealth partners, which include wirehouses, private banks, independent/regional broker-dealers, registered investment advisors (RIAs) and fintech platforms.
“Investors are rethinking the traditional 60/40 portfolio construction model and are increasingly looking towards alternative investments as a source of uncorrelated returns. Given our nearly five decades of experience investing in alternatives, we believe we are well positioned to help individuals meet their retirement needs,” said Todd Builione, Global Head of Private Wealth at KKR. “Paula’s appointment underscores our commitment to building a market-leading wealth business that brings the best of KKR’s insights and alternative investment strategies to this important and growing segment.”
“Having worked closely with Paula for the past seven years, I am confident that her breadth of experience across macroeconomics, deal related work, and asset allocation will make her a trusted resource to financial advisors and our private wealth investors,” said Henry McVey, CIO of KKR’s Balance Sheet and Head of Global Macro and Asset Allocation (GMAA).
KKR manages nearly $70 billion in private wealth assets (as of December 31, 2022) through relationships with private wealth firms and a large network of Financial Advisors and RIAs, according the firm information.
Currently, individual investors can access KKR’s real estate and credit investments through its continuously offered registered funds, KKR Real Estate Select Trust (KREST) and KKR Credit Opportunities Portfolio (KCOP).
Beyond real estate and credit, KKR has previously stated that the firm intends to have ways for individuals to access its investments in private equity and infrastructure in 2023. KKR expects private wealth assets to account for 30-50% of its annual fundraising over the next several years.
“I am thrilled to work with Todd, Henry and the private wealth team to deepen our relationships with private wealth firms and Financial Advisors by providing differentiated and trusted insights that help them navigate and thoughtfully incorporate alternative investments into their portfolios,” said Roberts.
Roberts was most recently Managing Director and Global Head of Consumer and Real Estate Macro and Thematic Investing (CREM).
In this role, Roberts helped drive thematic investing efforts across KKR’s global real estate, consumer private equity and credit businesses. Prior to joining KKR in 2017, she was an executive director at Morgan Stanley, where she managed coverage of the U.S. consumer sector.
Roberts is a member of the Federal Reserve Bank of New York’sEconomic Advisory Panel. She also serves on the board of the American Friends of Jamaica and is a Lincoln Center Leadership Fellow.
CC-BY-SA-2.0, FlickrReserva Federal de Estados Unidos (Adam Pagen)
The Federal Reserve is “strongly committed to returning inflation to its 2 percent objective” and, in that context, re-announced an interest rate hike despite the banking crisis. The increase is 0.25 points and brings interest rates to 5%.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-3/4 to 5 percent. The Committee will closely monitor incoming information and assess the implications for monetary policy,” the statement said.
In addition, the FOMC “anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.”
In determining the extent of future increases in the target range, “the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
According to the Fed’s March 22 statement, “recent indicators point to moderate growth in spending and output. Job creation has picked up in recent months and is running at a solid pace; the unemployment rate has remained low. Inflation remains elevated.”
“The U.S. banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks,” the monetary authority concluded.
Franklin Templeton announced the appointment of James Andrus as Vice President of Sustainability Global Markets, a newly created leadership role within the firm’s Global Sustainability Strategy Team.
Andrus joins Franklin Templeton from the California Public Employees’ Retirement System (CalPERS), where he served as the Interim Managing Investment Director for Sustainable Investing and led CalPERS’ sustainable investment strategy across its US$443 billion investment portfolio, according the firm information.
“James is deeply experienced in corporate governance and brings a wealth of knowledge and expertise in the effective management of financial, human and natural capital to Franklin Templeton,” said Anne Simpson, Franklin Templeton’s Global Head of Sustainability. “We are committed to building dedicated resources as the profound evolution and increasing complexities related to sustainable investing continue in the industry globally. I am delighted for James to join our growing team as we accelerate our efforts in this important area.”
Based in California, Andrus will oversee execution of Franklin Templeton’s sustainability and stewardship initiatives and serve as an advocate and spokesperson with clients, external organizations, policymakers, regulators and internal stakeholders.
He will manage the firm’s Global Sustainability Strategy Team, which implements the firm’s sustainable investment strategy and consists of professionals located across Europe, Asia and the United States with additional recruitment underway for data, content, stewardship and product roles.
He will also work closely with the firm’s Global Public Policy team. Andrus will report to Simpson, who is responsible for the firm’s overall strategic direction on stewardship and sustainable investment in her role of Global Head of Sustainability. Simpson reports to Jenny Johnson, CEO and President of Franklin Templeton.
“I am excited by the opportunity to join Franklin Templeton, a world-renowned global investment firm with dynamic leaders, at an important point in time to focus on sustainability,” said Andrus. “I look forward to adding value by advancing the sustainable investment priorities and contributing directly to global regulation and policy initiatives while emphasizing enhanced financial information.”
Andrus brings deep industry and regulatory knowledge from his diverse background. Most recently, in serving as Interim Managing Investment Director for Sustainable Investing at CalPERS, he advocated for transparency in the financial markets at the national and international levels to ensure that investors like CalPERS have appropriate regulatory environments for investing their assets. Prior to CalPERS, he was a partner at K&L Gates, a global law firm.
Andrus is an experienced advocate for asset owners as a member of the SEC Investor Advisory Committee, Public Company Accounting Oversight Board (PCAOB) Investor Advisory Group, Financial Accounting Standards Advisory Council (FASAC) and the International Financial Reporting Standards Advisory Council.
He is also co-chair of the Financial Capital Committee of the International Corporate Governance Network (ICGN), representing investors overseeing approximately US$70 trillion.
Andrus is a former U.S. Army officer and a graduate of West Point. He received his J.D. from the University of Texas School of Law.
Fiduciary Trust International announces that Allison Chance Carter and Timothy Barton, CFA, have joined the firm as managing directors and senior trust officer/trust counsel and senior portfolio manager, respectively.
They are based in Atlanta, a region where Fiduciary Trust International is expanding its presence, the firm said.
“The Atlanta region is a terrific wealth management market with many families and institutions that can benefit from our customized investment, trust and estate, and wealth planning services,” said David W. Edmiston, Fiduciary Trust International’s regional managing director for Greater Atlanta. “Allie and Tim are highly respected wealth management professionals with deep experience and strong ties to the Atlanta community. My teammates and I are excited to welcome them to Fiduciary, and we look forward to working with them to help more clients in Atlanta and across the Southeast achieve financial peace of mind.”
Fiduciary Trust International announced in November 2021 its entry into the Southeast with a local team in Atlanta led by Edmiston who had previously worked with Abbot Downing, Wells Fargo Private Bank, and its predecessor companies for more than 30 years.
The growing Atlanta hub strengthens Fiduciary Trust International’s East Coast presence from Massachusetts to Florida and west to California.
Carter was most recently a senior trust advisor and senior vice president at Northern Trust in Atlanta, where she served high-net-worth and ultra-high-net-worth families and individuals for the past 10 years.
She was previously a senior trust advisor at Wells Fargo Private Bank. She began her career in the trusts and estates practice group at King & Spalding in Atlanta. Carter formerly served on the board of directors of the Atlanta Estate Planning Council, and she is a member of the State Bar of Georgia’s Fiduciary Law Section as well as the Atlanta Bar Association’s Estate Planning & Probate Section. Carter obtained her law degree from the Georgia State University College of Law, and graduated magna cum laude from Sweet Briar College with a BS in psychology.
For the last 10 years, Barton served as a senior portfolio manager and senior vice president at Northern Trust in Atlanta where he developed investment strategies for families and individuals. Prior to Northern Trust, he was an investment strategist at Wells Fargo Private Bank. Barton is a CFA Institute member, a CFA® charter holder, and a member of CFA Society Atlanta. He earned his MBA from Campbell University, where he also received his BBA in trust and investment management.
A new survey from Principal Financial Group identifies the leading disruptors to the retirement industry that employers and financial professionals believe will reshape plans, services, and solutions by 2030.
An aging workforce, Generation Z, the growing demand for personalized investment advice, and financial wellness are top of mind for more than 250 plan sponsors and 200 financial professionals that responded to the Principal® Future of Retirement Survey.
Each are viewed as priorities in the next 5-7 years to help address the widening retirement gap that is approaching $4 trillion in the U.S.
“Understanding the evolving needs of participants and employers is critical to building relevant and meaningful retirement plans, solutions, and advice,” said Chris Littlefield, president of Retirement and Income Solutions at Principal®. “We are relentlessly focused on what our customers need to help meet their financial and retirement goals. Whether it’s more customized products, holistic guidance, or mobile-friendly, digital tools and resources, we will continue to leverage our relationships with financial professionals and strategic partners to help innovate and enhance the customer experience.”
Competing generational needs
Employers are often choosing retirement plans to help meet the needs of five generations of Americans. More of Gen Z will enter the labor market in the next 5-7 years while the number of people aged 75 and older in the workforce is expected to grow 96.6 percent by 2030.
To support an aging workforce, three out of four plan sponsors and financial professionals agree participants should have the ability to make recurring withdrawals from their employer-sponsored retirement savings as they take a phased approach to retirement.
“Choosing to retire is no longer a single-step life decision. Many individuals approaching 60-65 years of age need or prefer a phased retirement, working part-time to get relief from the 40-hour work week without fear of outliving their nest eggs,” Littlefield said.
On the opposite end of the workforce spectrum, 76% of plan sponsors agreed the expectations of millennial and Gen Z investors will be the driving change in retirement markets by 2030. In particular, the preference Gen Z has to conduct most financial business online is viewed by both financial professionals (55%) and plan sponsors (47%) as the top disruptor from this generation.
Personalization is paramount
According to the Principal® Future of Retirement Survey, one growing expectation to better serve participants is an ability to provide individualized advice.
More than 70% of both plan sponsors and financial professionals agreed personalized investment portfolios and managed account services will be common offerings within defined contribution plans by 2030.
To offer more holistic and personal guidance, 78% of plan sponsors and 77% of financial professionals also agreed there will be a shift from improving the enrollment process for employees to improving the retirement process, which can include services such as advice, retirement planning, and creating retirement income.
Financial wellness programs are also expected to emerge as an additional plan resource to further personalize the participant experience by 2030, with 85% of plan sponsors and 90% of financial professionals agreeing plan sponsors will increase the adoption of them.
Outside of retirement savings programs, plan sponsors believe the top five financial wellness benefits that should be offered include helping participants establish a budget and financial plan, retirement income planning, credit card and debt counseling, healthcare planning for early retirees, and investment education.
Allfunds Alternative Solutions is the result of Allfunds’ response to strong demand among its clients, especially those from the wealth management segment, for better access to alternative assets and private markets.
Although Allfunds already has experience in this area and assets under administration in specialized vehicles (UCITs, ELTIFs, UCI Part II, RAIFs y FCRs) until today it was a service performed only on an on-demand basis.
Borja Largo, Chief Fund Groups Officer, will lead a team composed of a combination of new hires and existing Allfunds employees, whose task will be to channel current demand and drive Allfunds’ growth in services related to illiquid strategies.
As it did for ELTIFs in the past, Allfunds Alternative Solutions will adopt a similar strategy and will initially focus on improving operational efficiency for all vehicles, including global structures such as ELTIFs, RAIFs, UCIs Part II, and local ones, such as the Spanish FCR, to meet the needs of a broad and diverse client base.
Borja Largo, Chief Fund Groups Officer states, “It was essential for us to have a team dedicated exclusively to alternative assets, this was the only way we could meet the growing demand from our clients and offer them a service that matched their expectations and past experience with Allfunds. We decided to build this team and launch the project on the solid foundation of Allfunds’ success in the traditional asset market, which puts us in a unique position to understand the requirements and preferences of both General Partners and distributors of illiquid strategies.”
Juan Alcaraz, CEO of Allfunds adds, “This is another step in our ongoing effort to have the best value proposition in the market and to enhance our one-stop shop model, covering all our customers’ needs in a single point of access. We have been developing our alternative offering for some time and believe that with the combination of our experience, human capital and technology, we are perfectly positioned to capitalise on these opportunities”.
CONTI Capital has partnered with iCapital to offer investment opportunities in CONTI’s U.S.-based, multifamily real estate funds.
“We’ve seen a surge of interest from investors seeking access to U.S. real estate investments for portfolio diversification, capital preservation, and income enhancement,” says Carlos Vaz, founder and CEO of CONTI Capital. “We’re pleased to introduce broader access to CONTI Capital’s investment strategies and funds to the financial advisory community and their accredited clients. iCapital’s technology and service platform offers investors transparency, efficiency, and a user-friendly, digital investment experience.”
Lawrence Calcano, Chairman and CEO of iCapital, says: “We’re thrilled to be working with CONTI Capital, a recognized leader in multifamily real estate investing, to bring efficiency and ease to the alternative investing process for advisors and their clients.”
Investment fund focused on multifamily properties in the U.S. Sun Belt
iCapital’s platform now features the CONTI RE High-Growth Fund IV, a $200 million fund concentrated on acquiring multifamily properties in select rapidly growing U.S. Sun Belt markets. Focused on newly built, Class A multifamily properties, the Fund has already acquired properties in Tampa and Orlando, Florida, and Austin, Texas. The Fund will seek a target return of 10-14% IRR3 (net of all fees and expenses) with approximately a 3–5-year hold period.
“The Sun Belt states boast solid job markets with a combined GDP of $6.23T4, pro-business environments, and a low cost of living, so the pressure of migration to those states continues to have housing demand outstrip supply. Coupled with inflation pressures and record-high home sales prices, the demand for rental properties remains strong,” Vaz continues. “At CONTI Capital, we feel the multifamily sector is a strong investment choice, regardless of market conditions, because everyone needs a place to live. Our analysis demonstrates that necessity-based CRE is far more resilient during economic downturns than other product types.”
Investment approach is driven by real-time, data-led research and analysis
“This past year, in 2022, CONTI quickly adapted to market changes and sold the most assets in the company’s history, 14 of which consisted of 3,989 units when Fund I and Fund II were fully realized,” states Vaz. “We continue to prepare for other opportunities by constantly monitoring the economic and demographic drivers affecting the multifamily industry. To ensure we are at the forefront of market dynamics and able to use data to support our portfolio acquisition strategies, we embraced technology in a very dynamic way.”
CONTI’s proprietary data modeling tool, the CONTI Index, tracks more than 400 weighted indicators from millions of data points and is grouped into six categories: housing supply and affordability, demographics, labor market durability, risk and reward, quality of life, and fiscal health. Based on rankings generated by the CONTI Index, the company releases its Top 10 Markets for Multifamily Investment Report semi-annually and its quarterly CONTI Report for insights impacting real estate investing.
Apex Group Ltd announces the successful close of the acquisition of BRL Trust DTVM following full regulatory approval.
BRL DTVM is the sister company of BRL Trust Investimentos, Brazil’s leading private equity fund administrator and custodian which was acquired by Apex Group in 2021. BRL DTVM provides fund administration to real estate, trade receivables and open-ended funds, as well as custody services and NAV calculation for all fund types, the press release said.
This strategic acquisition further expands the Group’s presence in the Brazilian market, consolidating to become the largest custody and fund administration provider to the alternative fund segment, by assets, the firm added.
BRL DTVM grows Apex Group’s footprint in Brazil to over 300 employees, enhancing open-ended fund servicing capabilities to the local market. Apex Group will continue to expand the solutions offered in the Brazil market, including Corporate Services.
BRL DTVM’s clients will now benefit from access to Apex Group’s single-source solution, including an extended range of products including Capital Raising and ESG Rating & Advisory, delivered by over 11,000 experts across 38 markets worldwide.
This transaction continues Apex Group’s growth momentum in Latin America, and follows the previous announcement of the acquisition of MAF, the fund administration business of the Brazil-based Banco Modal.
Peter Hughes, Founder and CEO of Apex Group comments: “We continue to see compelling opportunities for further consolidation and growth in the Latin American fund services market. We are proud to become the largest independent services provider to alternatives funds in the Brazilian market, supporting our clients with a comprehensive suite of solutions, serving their requirements throughout the lifecycle of their fund vehicles.”
Ricardo Lima Soares, Regional Managing Director, Latin America at Apex Group adds: “We are excited for the opportunities acquisition will provide to bring our single-source offering to our clients in the Brazilian market and support their continued growth and success. Building on the acquisitions of BRL DTVM, BRL Trust Investimentos and MAF, we are well positioned for further growth as one of the leading service providers in Brazil. As part of the Apex Group, BRL’s clients have access to the broadest range of services in the industry, delivered by an independent, truly global, financial services group.”
A&M acted as financial and tax advisor and Lefosse Advogados and Willkie Farr and Gallagher provided legal counsel to Apex Group. Vinci Partners and Mello Torres provided counsel to BRL Trust.
The NFT gathering to hit the Web3 hub that is Southern Florida – Miami NFT Week – is returning to the 305 this March 2023.
Aiming to bridge the rapidly growing crypto-native communities emerging in Latin America, the United States and beyond, Miami NFT Week focuses on diversity, inclusivity and education in the NFT and Web3 space.
The three-day conference – organized and hosted by Non Fungible Events – will be held at Miami’s Mana Wynwood Convention Center from March 31 through April 2, 2023. The event – sponsored by TradeStation, as well as Fortune 500 companies MasterCard and Delta Airlines – will feature forward-looking discussion panels and exclusive networking forums on key topics in the NFT space, including music, gaming, professional sports and entertainment.
In a statement, Gianni D’Alerta, co-founder of Miami NFT Week and Non Fungible Events, offered enthusiasm for the forum’s unique programming aimed at encouraging the exchange of novel ideas for how to best utilize revolutionary NFT technology as a foundation for fostering enduring global relationships and spurring innovation in a wide variety of industries.
“You’re seeing interest in NFT technology exploding in both Latin America and North America, and it’s critical to bring these two communities together at an event like Miami NFT Week for collective creativity in building new platforms and protocols together and for forging long-lasting friendships that will make the blockchain and Web3 space a truly revolutionary movement,” said D’Alerta. “And I can’t think of a better location to do this than the city that has become so important for Web3 innovation and for melding together all the diverse and culturally exciting communities that span the Americas – that is, the City of Miami.”
Last year, Miami NFT Week garnered more than 5,000 in-person attendees. This year, it is expected to draw in an even larger crowd.
Additional programming details and speakers to be released soon.
For more information on how to attend Miami NFT Week, including how to purchase tickets, please visit MiamiNFTWeek.com.
Sanctuary Wealth announces the appointment of David Vaughanto the firm’s Executive Leadership Team as Chief Financial Officer (CFO).
“After a comprehensive search, Vaughan was chosen to fill the vacant CFO position, reporting directly to Adam Malamed, CEO of Sanctuary Wealth. With close to 30 years of experience across the independent wealth management industry, Mr. Vaughan has established a respected track record of developing and implementing effective organic and M&A-based growth strategies, with an emphasis on strong bottom line results that enable significant reinvestment in the business,” the company said.
“I’m delighted that David agreed to bring his extensive independent wealth management experience and skills to Sanctuary,” said Malamed. “Having worked together for more than 10 years while David was with Ladenburg Thalmann, I have seen his abilities, work ethic and integrity firsthand. He has a deep understanding of how carefully planned and impeccably executed corporate finance strategies can exponentially scale an independent wealth management business, while simplifying complex processes and facilitating future growth. He will be an invaluable asset to our already strong Executive Leadership Team as we continue to grow Sanctuary into the firm of choice for sophisticated independent and breakaway advisors and practices.”
In his role as CFO Vaughan will be responsible for managing all of Sanctuary’s financial operations, including accounting, budgeting and financial reporting. He will play a key role in strategic decision-making, M&A, risk management and ensuring regulatory compliance. Vaughan will also be responsible for managing relationships with external stakeholders, such as Sanctuary Wealth investors and lenders. Additionally, he will oversee financial planning and forecasting to help leadership make informed decisions about future investments, capital expenditures, and growth opportunities.
“We’ve been looking to add this critical role to our Executive Leadership Team for more than six months,” said Robert Walter, Co-President, Sanctuary Wealth. “Our patient and deliberate search has now paid off. As soon as we had the opportunity to meet with David, we knew he was the person we needed to help ensure that Sanctuary continues to hit our strategic goals and remains the premier destination for advisors looking to be independent but not alone.”
Vince Fertitta, Co-President of Wealth Management, Sanctuary Wealth, added, “We are excited to welcome David to the firm and are looking forward to aligning his corporate finance expertise with our mission of driving growth for our Partner Firms. This includes leveraging David’s proven expertise in guiding and structuring mergers and acquisitions. His knowledge will be instrumental in expanding our ongoing success with investing in M&A deals alongside our Partner Firms, to drive accelerated growth for our Partner firms.”
“I’m excited to be joining an organization with Sanctuary’s momentum, and am thrilled to be working with Adam again,” said Vaughan. “Sanctuary is in the strongest financial position in its history, both well-capitalized and growing. This provides a uniquely robust foundation for me to utilize as a springboard in creating and implementing strategies to help Sanctuary and its advisor partner firms realize additional revenue opportunities, while increasing efficiencies. As the firm continues to grow, we will be able to provide an even greater service experience for Sanctuary partner firms and their clients.”
Vaughan was most recently CFO at Axos Clearing, where he directed multiple teams serving more than 70 broker-dealers and over 220 RIA firms. Prior to that he spent more than 27 years with Securities America, previously a subsidiary of Ladenburg Thalmann, where as CFO he led the accounting/finance, fee and commission billing, internal audit and risk management departments. Vaughan has a BBA in accounting from Creighton University’sHeider College of Business and an MBA from the University of Nebraska at Omaha.
