In a thought-provoking fireside chat, Sam Phillips, CEO of Reach Alternative Investments, shared his insights on the democratization of private assets, an industry that has traditionally been inaccessible to non-institutional investors. Here are the key takeaways from the conversation:

Background and Thesis: Sam Phillips, with a 20-year background in finance, founded Reach Alternative Investments in 2021 to help individuals build better portfolios by investing in private assets. The company’s thesis is to allow people to invest in top-performing funds, typically only accessible to institutional investors, while ensuring a “sleep well at night” strategy that minimizes risk.

Due Diligence and Partnership: Reach Alternative Investments partners with top global asset managers, conducting rigorous due diligence to ensure that only the best funds are available to their investors. This includes evaluating fund managers’ track records, stability, and risk management strategies. The company represents smaller LPs, allowing them to access funds that would otherwise be out of reach.

Exclusivity and Community: While exclusivity is a draw for some investors, Sam emphasized that the primary motivation is to build robust portfolios. Reach Alternative Investments has created a community of over 4,000 sophisticated investors, including family offices and wealth groups, who share the goal of diversifying their portfolios with high-quality private assets.

Consolidation and Scale: Sam predicted that the industry will see consolidation, with a few players emerging as leaders in the democratization of private assets. Reach Alternative Investments is focused on scaling its business, having already secured partnerships with top asset managers and with a strategic plan to expand its offerings.

Secondary Market and Liquidity: The secondary market is growing, and Reach Alternative Investments sees opportunities in this space. The company is exploring ways to create liquidity options for its investors, including a secondary fund launching later this year.

Growth and Partnerships: In the next few years, Reach Alternative Investments aims to conquer the Australian market, with potential for international expansion. The company is open to strategic partnerships that can enhance its offerings and reach, but is focused on building a scalable business that adds value to its investors.

Key timestamps:

00:09.36 Introduction to the Fireside Chat
01:33.89 The Role of Reach Alternative Investments
02:59.65 Evolution of Due Diligence in Private Equity
04:40.06 Assessing Fund Managers
06:38.25 Representation of Smaller Investors
09:54.77 Streamlining the Investment Process
11:48.95 Responsible Investing and Diversification
15:46.41 Future of Wealth Advisory and Private Equity
19:27.19 Opportunities in the Secondary Market
21:24.61 Reflecting on Growth and Scalability
23:11.26 Strategic Partnerships and Future Plans
25:11.23 Focusing on Domestic Growth Before Expansion
25:54.04 Conclusion and Acknowledgments