John Bullman, CIO at LGT Financial Advisors, joined Giovanni Mordeo for a fireside chat to discuss the evolution of alternative assets in client portfolios. John shared insights from his extensive background in consulting and family office investment management, emphasizing the democratization of alternative investments and their growing accessibility to a broader range of investors.

Key Topics Discussed:

1. Background and Role at LGT Financial Advisors:
   • John Bullman’s journey from consulting at RBC to his current role at LGT Financial Advisors.
   • His experience in managing institutional investment portfolios and bringing a family office style of investing to high-net-worth clients at LGT.
2. LGT Financial Advisors Overview:
   • LGT’s holistic approach to financial advisory, including accounting, tax, audit, financial planning, and investment management.
   • The firm’s mission to provide comprehensive financial services to its clients.
3. Trends in Private Capital Allocation:
   • The increasing allocation to private capital over the past 10-15 years.
   • The democratization of alternative investments, allowing smaller investors to access private equity and other alternative asset classes.
4. Democratization of Alternative Investments:
   • The shift from private equity being exclusive to large institutions to its availability through interval fund structures and liquid versions.
   • The potential future where alternatives become a standard part of investment portfolios.
5. Education and Client Relationships:
   • The importance of educating clients about alternative investments.
   • The evolution of client education over the past decade and the emphasis on building trust and strong relationships.
6. Private Credit and Equity:
   • John’s bullish outlook on private credit, particularly direct lending and opportunistic managers.
   • The appeal of private equity secondaries, offering discounted investments with known assets.
7. Manager Selection and Red Flags:
   • Criteria for selecting investment managers, including consistency, team incentives, and alignment with client goals.
   • Red flags such as inconsistent performance and changes in strategy due to asset growth.
8. Infrastructure Investments:
   • The expanding definition of infrastructure to include data centers, cell phone towers, and other economically critical assets.
   • The underinvestment in infrastructure and the high demand from tech companies for data center capacity.
9. Future of Investment Management:
   • The role of AI in speeding up the diligence process and improving portfolio construction.
   • The balance between human expertise and technological advancements in managing investments.

Conclusion:John Bullman provided valuable insights into the evolving landscape of alternative investments and the strategies employed by LGT Financial Advisors to navigate this dynamic environment. His emphasis on democratization, education, and careful manager selection highlights the firm’s commitment to delivering sophisticated investment solutions to its clients.

Key timestamps:

00:07 Introduction to the Fireside Chats
01:15 Understanding LGT Financial Advisors
03:02 The Concept of Democratization in Investments
04:27 The Role of Education in Alternative Investments
05:17 Current Focus on Private Credit
06:22 Opportunities in Private Equity
08:01 Outlook on Private Credit Sub-Asset Classes
09:20 Insights on Private Equity Strategies
10:58 Evaluating Secondary Market Opportunities
11:52 Data Management in Investment Decisions
13:19 Identifying Red Flags in Manager Selection
16:12 Assessing Manager Growth and Performance
17:14 Industry Trends: AUM vs. Specialization
18:48 Consolidation Drivers in Asset Management
19:27 Evolving Definition of Infrastructure Investments
21:34 The Importance of Access in Liquid Alternatives
22:11 Future of Asset Management: Technology’s Role
22:55 The Art of Portfolio Structuring