Inside Alternative Investing and Private Market Strategies (Ep. 142)

Speaker A: Transferring wealth successfully starts with asking yourself questions that will give your family a better life now and for generations to come. In this podcast, financial experts John and Michael Paris from Copper Beach Financial Group guide you through eye opening questions to help you discover the truth about your wealth. Now onto the show.

Speaker B: Hello and welcome to the Truth about wealth podcast podcast. I am Michael Paris of Copper Beach Financial Group and I have two very great guests that I'm really excited to introduce to you. We have Mr. Jeff Corey II, President and Co CIO of the Corey firm, and Tom Deutsch, also the co CIO of the Corey firm. Gentlemen, how you doing today?

Speaker C: Doing well, Michael, doing well. How are you?

Speaker D: Great, thanks for having us.

Speaker B: Yeah, I'm doing awesome. Flying solo here today. My father's feeling a little under the weather. He's usually with me as well on these podcasts. But I think we'll have a really good conversation. I'm excited to talk to you guys. So let's just get right into it. Give us a little bit of kind of who you guys are at the Corey firm, a little bit your background, what you guys do because you are now a new strategic partnership and relationship for, uh, for us at Copper Beach. So we're really excited to unveil you guys a little bit here. This podcast being sort of the inaugural way to do that. But give it, give our listeners a little bit of uh, your firm and your background.

Speaker D: Mike, thanks so much. Pleasure to be here. Pleasure to be speaking with everybody. Uh, for myself, I've been in the industry for 20 years, always on the investment side. I actually started in 2005 at Lehman Brothers in the investment bank, which was a difficult but perhaps last way to start in the career. A lot of important lessons right out of the gate. When Lehman went through his bankruptcy, I was actually saved because the entire asset management division spun out as a management led buyout. And spent my first few years at the firm now known as Neuberger Berman, working for the CIO and after a few years joined an equity investment team and spent about a dozen years working directly on a US equity vehicle that managed about $10 billion. So I've spent my entire career in and around investing, security selection, and now at the Corey firm, my role as co CIO is to work alongside Jeff and the team we have here to oversee, steer and direct capital allocation for our clients as well as the single family office. So I will, I will allow Jeff to explain and expand upon the Corey firm. But in essence, you know, that's, that's my short career and the focus at the Corey firm.

Speaker C: So. Thanks Tom. So Michael. I joined the firm actually 10 years ago and been with the firm since 2016. But the Corey firm's been around for 40 years. We're actually a multifaceted financial services firm. Started off more on the business advisory side, which is where our bread and butter is. We had a lot of clients that, where we would kind of team up with that matriarch or patriarch of the family that's running the business and advise them on really two facets. One is how they're running the business day to day, strategic operations, different opportunities, so on and so forth. But also set their estate uh, up from an estate asset protection standpoint, leveraging insurance and trust planning as a tool to help them protect their assets. Over the years, as those clients began to come into liquidity, they had the Joe brokers coming in saying, well, we'll charge you 1% for this, 2% for that. And it was actually in the late 90s that, spearheaded by our CEO Greg Corey, our clients approached us and said, hey, we trust you. We want you to help us run our capital the same way you helped us run our businesses. So in the late 90s, we didn't call it a multifamily office at the time, but that's when we established our multifamily office and uh, our registered investment advisory practice. And today we advise a close group of about 15 families, including our own family where we have our own single family office. So when I joined the business, it really is when we spearheaded and began to build out our asset management division where we in sourced a lot of what we were previously outsourcing, um, everything from investment research, managing due diligence, money model portfolios. That's really been our bread and butter. And with Tom joining the team as co cio, we have an asset management team of about six personnel where we're really dedicated and focused on all facets of the asset management side in both public and private markets. Over the years, as you know, as I'm sure you can attest to, Michael, with your client base. Obviously alternative investments has been a big hot topic for us as our clients have begun to get more exposed and our single family office has begun to get more exposed. We had uh, were fortunate to build relationships with a lot of institutional managers on the private market side. And through those relationships we kind of took a step back and said, hey, we wanted to create a vehicle where we can make it super efficient for our multifamily office clients and our single family office to Pull capital together and invest in a uh, variety of different alternative managers across hedge funds, private equity, private credit, real estate, so on and so forth in an efficient manner. We've been able to do that over the last three years through a platform that we call PI Gateway. That really is the evolution of the firm and where we kind of focus today on the asset management side.

Speaker B: Yeah, that's great. Thanks guys. And I think love to hear about PI Gateway in a little bit. But Jeff, you brought up the single family office and the multifamily office and I'm sure many of our listeners may understand that distinction. But I do think that's if you wouldn't mind clarifying that because I uh, think just from our perspective when we talk to either prospective clients or even other advisors, sometimes those terms I would say maybe just don't make sense to them. They quite, they can't quite understand the distinction between the two of those things. But I think it's really important for, for our listeners to understand that. So if you wouldn't mind taking uh, like just a minute or two and just talking about those distinctions and particularly why that's I think important for how you at the Corey firm manage your clients capital and sort of co invest alongside them.

Speaker C: Sure, uh, it's a really, really great point. And again taking with a grain of salt, I think one popular thing in the space is if you meet one family office, you really, you've met one family office. It is so highly customized to the relationships that you're dealing with and the families that you're working with. But we're kind of backwards in the sense that most of the time you have a single family office that's set up, they hire staff and then they end up working with other families and become a multi family office. You know, we grew up in the space as, as I mentioned earlier on the business advisory side and then established our multifamily office practice to be able to serve the families that we worked with that uh, have now come into liquidity through selling those businesses. So the multi family office is really a group of families coming together and leveraging resources within a single ecosystem and tapping into centralized resources of one platform. Right. So it is more of a commercial business but we do offer very, very high touch services. Concierge, investment management, estate planning, insurance, you know, everything outside of, not just the traditional wealth management we're covering on the multifamily office side now as uh, families become more and more liquid and hit a higher threshold, especially those that value a little bit more Privacy and control over operations, or may have real estate holdings or direct businesses that need to be managed. That's where a single family office structure can be beneficial from a governance perspective, being able to protect and put the right dedicated personnel to serve just your family. However, the beauty of our structure is, is that our single family office is a client of the multifamily office. Right where we are engaging the multifamily office. Like Tom myself, we're all in the multifamily office. All investments are handled here. Right? So that structure allows us to have the flexibility to where our, you know, our family is seeding an investment. The other multifamily office clients are able to come in. We may get an investment that comes in from one of our multifamily office clients, whether that be a private business or a liquid investment that they're looking at. And our centralized investment team is then able to then take that and our family's getting the benefit as well. So the multi family office structure is really the core. And I would say, you know, our single family office is really bringing a lot of institutional relationships, different estate planning knowledge. Tom, I don't know if you would touch anything on how we do it on the investment side and how both of those kind of play off one

Speaker D: another on the investment side. Look, with a single family office, it's important, as Jeff distinguished, they're a client of the multifamily office. We have to earn the right to manage the capital for the family just as we would any other client. I think one unique aspect for me now working in a multifamily office setting, unlike previously when I was in an institutional setting, the challenge for us as investors is how do you deploy your best thinking in what is inherently a very unique, customized set of clients and thinking and tailoring investment solutions to the unique need states. There are some distinct nuances when we're allocating capital, but fundamentally, there are still some very important philosophical underpinnings that drive our investment decision making. So that's one unique aspect, at least when there are, as you could expect, new model portfolios. So to say, when you're working in a multifamily office setting.

Speaker B: That's great, guys, thank you. And I think why we're excited to work more closely with your firm is I think we share a very similar type of client base. Generally speaking, we have many of our families are running operating companies, family businesses, multi generational businesses. And my question back to you is, with that in mind, what has been your experience on, uh, Jeff, you alluded to it earlier when maybe there is a liquidity event in that operating business. And now the business goes from being very illiquid and the family is managing that asset very, you know, focused, day to day sort of way, versus now they sell that. And they have to now maybe look to firms like yourselves to be able to now take over that responsibility a little bit more so and manage that capital base. What does that transition like for the family? And from your experience and sort of, how has your firm been able to kind of navigate that transition? Because it's, it's a big one from our experience that the family has to go through.

Speaker C: No, you're, it's a, you're, you're, you're hitting the nail on the head, Michael. It's, uh, a, it's a big experience. And it's not just financial, it's an emotional experience as well. Because, you know, when you've got a founder, especially if it's the first generation, when the business is sold and they're the one that built the company, there's a little bit of an identity crisis that takes place as well. Where. And even though that trust is in place, where, as I said earlier, we like to help run their capital the same way we help them run their businesses, it is very different. Right. You have to now put a new structure in place to be able to have the right disciplines across the different asset classes that you're allocating to, across the different strategies that you may be going into. And I think entrepreneurs are used to taking a different type of risk when, um, they're running a business versus when you're running a portfolio. And when you get liquid and someone comes into 30, 40, 50 to 100 million of liquidity, uh, you don't necessarily want to take risk. Now. It's more about risk mitigation. Right. A calculated risk of how you're bucketing your capital and deploying capital. Right. So again, what we always tell our clients when that liquidity comes is it's to be patient, to take your time, that you don't need to rush into deploying into a portfolio. You got a lot of people that are going to be coming in, selling a bill of goods. And this strategy is the best strategy or this investment opportunity is the best opportunity. Every situation is different. And we kind of cater it to those, the clients, their investment policy staples really wrapped around not just their risk profile and mandate, but their personality of how they want capital deployed and where it should be structured. We're very thoughtful about that. And then we stage the capital deployment process to make sure that that accounts for that evolution for that particular client. One thing that is a journey, I would say to you, is we mentioned that we specialize in private investments, that we focus there. A lot of clients also aren't used to, uh, having that type of illiquidity in their investment portfolio, so to speak. So, you know, we have clients that are at that level that are 50, 60% in non liquid investments. We have others that won't do anything outside of daily liquidity. Right. Just because they don't understand it and don't want to touch it. Right. What we really try to do is educate our clients on why that's such a valuable tool to leverage, especially when you hit that size and that threshold of a portfolio. And we kind of go on that journey with them to make sure that we're educating and deploying capital in the right way. Tom, um, I don't know if you would add a couple other insights to that piece.

Speaker D: I think it's very important when someone has translated an illiquid asset or business into liquid wealth to keep them focused on the fundamentals. A lot of people behave very differently in an investment portfolio than they would within their business. And to Jeff's point around risk management, I mean, one of the things I learned immediately in my career with my experience at Lehman Brothers is the importance of durable portfolio construction. And I think it's a mistake for some people to view markets as this sort of speculative endeavor that is sort of guesswork. I believe there are some real immutable laws to investing and we tried to, uh, reinforce those, certainly the importance of fundamentals, you know, asset prices follow earnings over time. It's very important to understand the fundamentals of what you're investing in. Valuation that is a critical driver of long term results. We really look at valuation as a key component of risk. When you're investing in an asset and time horizon, it's very important to align your investments to the time horizons. Many of our clients, not all, once they've sold the business, they're looking to establish enduring family wealth, intergenerational wealth. So the investment horizons for some, not all, are quite long. So it's on the investment side, important exercise for us to work with each client and understand and map the investments to the situation.

Speaker B: Yeah, that's maybe a good segue into the alternative and private illiquid markets universe. And you guys, of course, allocate across all different types of asset classes. But you've alluded to the private markets a few times here. Already and would love to get your take on how you view that asset class and I'll use the term generally with alternatives, maybe even having a definition of what an alternative is because I think kind of like family offices, there's probably a few different definitions of what an alternative uh, is out there. Right. But love to kind of get your take on how your firm views alternatives as a, you know, part of a, uh, portfolio for a client. And particularly sort of in light of where we are today in sort of early 2026 when we're recording this, how do you all view alternatives as a. You're building and constructing those portfolios for clients.

Speaker C: Sure, sure. So it's a really good point Michael, because you know, again, people categorize things in all these different buckets and ways and, and it is hard to kind of get to the nitty gritty of how it works. I mean what I would say to you at the alternative investment space is vast to begin with. How we define alternative investments is really uh, we focus on private vehicles that allow you to get access to institutional managers that may focus on a particular sector or a particular investment strategy managing a private vehicle. So an example of that would be the hedge fund space. So a lot of the large hedge funds, they all have different niches or strategies that they focus on. Whether it be multi strat, where they have multiple portfolio managers that are all aggregated as part of a uh, of a system that they're managing. Whether it's a quantitative strategy or a systematic strategy or a discretionary macro view that they're trying to illustrate. And they're combining a lot of those different things, utilizing leverage to take advantage of what's happening in markets in that kind of a short term trading fashion. You also have maybe some of those more activist managers that some people may see in the news or be in articles that are taking uh, hostile positions in companies or trying to influence boards or do different things or taking a long short approach to get that beta exposure and create a differentiation in their investment strategy where you're getting that illiquidity premium for being in a non daily liquid vehicle. And we're very active in the hedge fund space. That's where we really started to focus first as we forayed our portfolios into private investments. And then as you kind of go down that liquidity matrix down to more non liquid vehicles, that's where you get the more private equity, uh, which is direct investments in the middle market or even smaller private companies, venture capital, which would be the smallest kind of early Stage investments focused mainly right now on AI and tech, and then everything from private credit, real estate, and kind of almost all the asset classes that you can trade in liquid markets. There are specialized private vehicles that we would define as underneath the alternative space where, you know, these managers are demanding a higher return profile for that illiquidity premium, you know, as I previously said. And so, you know, for us, as we started to allocate to more and more alternative investments over the years, we were looking for the right access points and the right manager relationships. Because of that, the dislocated nature of or decentralized nature of that ecosystem, you know, it is a hard thing to navigate in. And I will say it's also a very administrative, burdensome area to navigate because it's not like you can just open up a brokerage account and allocate to these vehicles. Right. A lot of them are relationship oriented. There's a lot of subdoc processes and things that you've got to go through. There's a lot of tax administration that goes along with private investments. So we first were going out there and trying to build those direct relationships, and then we took a step back to say, hey, let's develop a platform that can be an intermediary to be able to build those relationships, pull capital together, provide a seamless experience to the end client and for our family. Right. But then be able to be able to also have one direct relationship with these managers where we can again beat them up on fees, be able to pull capital and reach minimums that a single client going to that manager may not be able to achieve. Right. But we're able to do that in this pulled kind of vehicle fashion. So it's kind of a high level answer to start. We can dive into maybe some deeper areas where we focus. But before we do that, Tom, I don't know if you'd hit that from a different angle.

Speaker D: I would just say two things really in terms of alternative investments. I think there's really two ways to think of them. One, I think people often think of alternatives in terms of the investment vehicle type, like a hedge fund, a private equity fund, a direct investment. That's probably the wrong way to think about it. We typically think about it based on the fundamental attributes and the performance behavior of the underlying investment. So for us, alternative investments are things that are non correlated to, uh, traditional markets, equity markets, credit markets, things that have a very specific idiosyncratic performance driver. So that's generally what we view when we're constructing portfolios as something Alternative. At the end of the day, if you own inequity in public or private form, it is still an equity, uh, and it will behave as such. So for us I think our lens uh, on alts in general is more based on the behavior and the underlying investment, not the vehicle that it's structured in. That's one, two for us. It's become, Jeff, uh, said, uh, an extremely important part of our client portfolios. And I would say there's two real drivers of that. The first one is a function of the market environment we're in today. We're in an environment where equity markets around every major global region are trading near all time high valuations. We're also in an environment where credit and high yield fixed income is trading at historically tight credit spreads, meaning incredibly high valuations. So we generally think that public markets in general have gotten quite rich. And as we look for opportunities, one of the best areas we see investors being rewarded is in private markets. And that's what we call an illiquidity premium. If an investor is going to give up liquidity, they should be compensated for that risk. In our view right now, based on valuations between public and private markets, investors are being extremely well paid relative to other forms of risk to give up liquidity. So one is that that can change, but that is a definite driving force on our allocations. And two is as I mentioned coming back to investor time horizon, a lot of our clients are starting to think long term, often intergenerationally. And when you're thinking in those dimensions and you do not need your entire portfolio to be immediately liquid, it makes a lot of sense where they're being rewarded to give up that liquidity. Invest in private assets that have structurally much greater return potential and the compounding effect of that over time is significant. So again alternatives for us are both a function of the market valuations, but also working with our clients thinking long term to try to best capture long term value.

Speaker B: So how do you guys, when you're, when you're looking at, in the alternative space and maybe let's just take uh, let's use private equity funds as one sort of subset of that asset class, we see a lot of our clients that they're getting presented a lot of different opportunities by a lot of different, whether it's advisors that they have or sometimes it's maybe a family member or a buddy at their club that's presenting them these ideas and things to invest into. How does your firm go about, I uh, guess whittling down that sort of huge universe of these opportunities that are out there into ones that you have maybe higher conviction in as you're recommending that asset class to a client.

Speaker C: I think it's a very good point, Michael. And what I would tell you is, I mean the first starting point for us is that we're not like launching a product or going out there trying to sell something. We are at the end of the day, investors, our family, seating, each of these. So the starting point is, is that we're deploying capital, we have dry powder that, that is committed to these vehicles as we're deploying. So our process, as Tom was alluding to earlier, really does start at the macro level, looking at what's our view of valuations, what's our view of the different sectors within, whether it be public or private markets? Because as Tom mentioned, it's, it's really starts there. It's like, what are the themes that we're trying to take advantage of? Because private equity is a very, very big word, right? And yes, like we have the same situation with our clients and even ourselves, right? We're getting pitched funds every single day from every different area of where you can get to like. So for us it's really about first starting with that top level view of where do we see capital flows moving, what are the sectors that we believe are driving tomorrow, right. Of where multiples are going to be expanding or contracting across different sectors. And we map our manager diligence and our time units of where we're putting our research team to focus based upon that. So like I would tell you that there's been obviously, as everyone's talking about, a lot of traction in the AI space, right? And not just an artificial intelligence of like, you know, LLMs that you hear about in the news, but what is all the infrastructure behind what it takes to manage and build those things, whether it be the power supply that's actually powering them, whether it be the software or front end systems that are being leveraged, whether it be in the LMS themselves and the energy sources. So we're looking at that entire value chain and then trying to identify the right institutional managers that are able to extract a differentiated investment opportunity within that space. So we do our best to kind of first to summarize, Michael, identify the sectors within private equity that we're trying to focus on and then uh, align ourselves with managers that are best in class within each of those spaces. The last point I would touch on before Tom pass it over to you is there's different forms of how we try to take advantage and reflect that view within those different sectors. That may not always be through a, uh, fund investment. It could also be through direct investments in private companies or growth companies, because we do try to get our exposure any way that we can based upon those thematic views. And so we are flexible with the mandate there as well, which allows us to be able to take advantage of some interesting opportunities. Tom, I don't know how you would,

Speaker D: um, I think just a couple important points to add on here. Previously I was saying that we certainly believe that private markets offer much greater return potential over time than public markets, especially at current valuations. There's a very important caveat though that goes to your question and that is the difference between a good and bad fund in private markets is, is far greater than the disparity of performance between good and bad managers in the public markets. And I think one driving factor behind that, unfortunately, is the prevalence of benchmarks and passive funds in public markets. It's unfortunately made a lot of public market managers think about risk much more in terms of whether or not they're beating benchmarks and the propensity for them to get fired, as opposed to the risks and the underlying investments they're taking. So, uh, in the private markets, while the performance opportunity is significant, you've got to be very good at screening and identifying and finding the right managers. That really drives outcomes. And that's why for our team, we spend a lot of time here. I would say there are many great firms depending on the space. We spend a lot of time with different teams, different firms, obviously looking at their long term records. So this is an important and vast area. It's an inordinate amount of the research time we're spending. But you know, I think that the fundamental point here is the outcomes of manager selection on the private side are far more consequential. And that's why we channel so much of our effort there.

Speaker B: Yeah, that's great. Thank you for that. And I want to circle, uh, back to the platform that you have built to really assist with a lot of these questions that we're talking about here. Topics we're talking about here, this PI Gateway program or platform rather that you've built. Why did you build that? Or you looked to it a little bit earlier, Jeff. But to give our listeners what are the challenges that would go into, let's say getting into the alternatives world and how does the PI Gateway platform help solve some of those issues?

Speaker C: Sure, sure. So, I mean, I think it's a function of really Uh, I would put the things in two different buckets, Michael. One is access. So a lot of the top tier managers that are out there, the ones that we are fortunate to not be building relationships with and be allocated with, they have very high threshold to minimums to be able to access them. So it's one thing to be able to do the research, identify the opportunities. As Tom said, the disparity within private markets, within hedge funds alone, right. Was you allocate to a manager, the disparity there versus within, you know, public markets is much larger. And you, you know, whether or not you're building a successful portfolio really meant, you know, depends on that manager diligence process. But in order to get that top tier manager that may be at the top quartile of that performance, you know, they may be at 5, 10, 15, sometimes upwards of $20 million minimums to get access to those managers. So that's the first threshold, Michael, that I would tell you we noticed as we got out there, you know, we, you know, us as a single family office or maybe some of our top clients, were able to potentially write that check. But it created another problem. If you're a $50 million portfolio and, you know, 0.72, as a hedge fund, might have a 10 to $15 million minimum, you may be able to write that check. But now it's 20% of your portfolio and it's not really fiduciary responsible. You would not manage any other asset class within your portfolio with one concentrated position, with one manager. Right. So we took a step back and we first wanted to solve that access problem where we could pull capital together for, you know, our multifamily office clients that are at that inflection point where, you know, you could write a, you know, million dollar check or $5 million check to a vehicle that could be allocated to five or six institutional level managers within the hedge fund space, private credit space, special situations, private equity. You know, we have a mandate almost within every sector of private markets, but it's, you know, you're writing a million dollar check as if you have a $50 million mandate with some of the managers that we have out there. I would tell you the second component, Michael, of what I was alluding to earlier is the administrative burden of private investments. So you may have the best opportunity in the world and be able to meet that minimum, but you got to go through your kyc, the sub doc process. You have to be able to take your client through that whole process and then be able to allocate on Some investments that could be time sensitive. And then you know, if you want to be able to do that across 40 or 50 different managers, that's 40 or 50 different processes with different reporting frequencies. You've got then a K1 from 45 different investments that are coming in that you got to aggregate together. So the platform that we created not only was able to pull capital to take advantage of getting access to institutional managers at a lower minimum and more of a diversified, better return profile fashion, but also consolidate that reporting and consolidate the K1 process where you could be in, you know, seven different private mandates across hedge funds, equity focused hedge funds, private credit, special situations private equity, and maybe a few direct investments as I was alluding to before. But all of that rolls up into a single structure and a single K1 from a tax perspective so that you have one place for your alternative investments. You're taking advantage of that access and we're pulling it together in that way. Does that make sense?

Speaker B: Yeah, that's huge. I mean that's one thing that investors that are listening may not see this side of it, but you know that on, on our side there's a lot of push in. It's almost a selling point for some of these funds where they, they are not a K1 fund. They're a, you know, it's 1099 reporting so that you, the investor receives that 1099 a little bit earlier in the year and it makes it easier to file for their taxes personally as the investor. But that, that may not be the best manager or the best structure to invest into. So it's, it's interesting that you've created something that I, it sounds like can maybe solve a little bit of those issues where you know, K1's just reporting standpoint be a little more difficult. But you sounds like you've solved that.

Speaker C: That's exactly right. Yeah, that's exactly what we set out to solve. And that's, that's a structural, right, administrative uh, thing. But we, we put the right service providers and team in place to be able to consolidate that all together, streamline the tax reporting process, streamline the tax estimate process and kind of have it be one or you know, one or two numbers that, that come in that is able to really ease that administration for the end client while still being able to separate and take advantage of the different investments that you want to be able to be allocated to, if that makes sense to you.

Speaker D: Yeah, Michael, we were, we were really living the pain. Look, I think to your, to your earlier point we see A lot of investment activity that's it's going in certain directions because it might be easier or more expedient, whether it's easier to just explain or not explain performance if you are the index or some of these interval funds. And I think what people are also seeing right now is easy come, easy go, and there's a lot of people suffering, gating and all these other things that we're seeing come out within these democratized retail versions of private funds. So our approach was never to do the easy thing. We wanted to try to make the right investment decisions and then back solve the administration around it within PI Gateway for those that if we didn't describe it, it's in essence a single partnership that we formed to do all our private or the majority of our private and alternative investments through both for the single family and multifamily clients. We now have probably over 40 manager general partner relationships across all of our different mandates. We've got probably at least half of those on the hedge fund side as well as the private side. So as Jeff said, whether it's the subscription process, whether it's the accounting and the K1s capital calls, with that many managers, you'd be getting capital calls, you know, almost weekly. So we've tried to set up and design a structure. We have set up and designed a structure to help us address all that on behalf of ourselves as well as the clients who are investing with us. Yeah. So again, I think it's very important to underscore there are some important developments that are coming out there. But for us, first and foremost, it's make the right investment choice and then try to, then try to figure out the operations of it.

Speaker B: Yeah.

Speaker C: And uh, it's a great point, Tom, because that's exactly right. And both sides feed each other. From that perspective, Michael, is what we found is what's so important is building the relationship with the manager and building the relationship with who the subject matter experts are is one thing that, you know, our CEO Greg always says is, you know, we're smart enough to know how dumb we are, but humble enough to admit it. So we like to put people around us in every area of the business, but specifically with investments that are bigger, bad or sharper, smarter. So when we're, you know, sitting down with a manager, you know, that's where you know, the direct, uh, investment opportunities that we were alluding to that a couple of them that are on our, uh, platform, that came from us diving deeper with a couple of our institutional managers that may be focused on the AI sector or maybe focused on data center build outs or real estate, whatever it may be. Right. Whatever that focus of the investment is, that tree branches into another fund opportunity or a direct investment that can then be reflected in client portfolios in another way. So it's an evergreen process. And the fact that we're able to pull the capital together, those that are able to invest through the PI Gateway platform are leveraging those relationships and getting the economies of scale, but also getting the intellectual leverage and that eventual tree branches that we're, we're seeing continue to build and we're excited about, you know, the momentum that that can take, that we continue to see there, if that makes sense to you.

Speaker B: Yeah, that, that's, that's really exciting. That seems like solves a lot of the major issues that come into play when you're doing alternative investing. Listen guys, this has been wonderful. We're running a little short on time, but we got a few more minutes. Love to maybe get your thoughts on anything that maybe I haven't asked what's sort of closing thoughts from your perspective. Uh, before we sign off here.

Speaker C: Tom, you want to go first?

Speaker D: Yeah, sure. Look, uh, the only thing I want to mention just structurally on the vehicle is while we do have an aggregated approach in terms of the operations, it can be sleeved and customized to any client situation. So we are not sort of a directing investments for all people. So there's, there's an inherent level of customization which comes back to the original point around multifamily office clients. Similar to your profile. I think just kind of closing thoughts again are for us on the asset management side, uh, we are working hard to try to deliver investment results that are prudent, deliver our best thinking, but do it in a way that it meets the unique needs of the families. And certainly through PI Gateway, I think we've designed a structure that can facilitate that. And I think in this kind of market environment, with the geopolitics as well as the elevated valuations, now more than ever perhaps is the time to be thinking hard about these types of assets.

Speaker C: I would totally echo and agree with that. And all I would add is things are changing a lot faster and moving a lot faster than historically. And uh, what we're finding as a single family office, as a multi family office, and just as investors in general, you have to be able to move quicker, even in private markets. So for us, we're lining up the right relationships, the right investment opportunities in order to do that. And at the end of the day. Everything is about who you're aligned with, the relationships that you have built, and then how quickly can you react to some of these changes that we're seeing in the world, whether it be AI, whether it be geopolitically. As Tom alluded to, there's a lot happening and the speed at which it's taking place is increasing. And so having the right structure in place for your portfolio so you can be agile and having the right strategies in place to take advantage of those changes as they come and be protected on the downside, I would say that's the most important thing and that's where we're focused every day, across the board, across public and private markets, and how they interconnect.

Speaker B: This is great. Jeff, Tom, thank you so much for being a part of, uh, this episode of the Truth about wealth where, uh, I'm sure we will be having both of you guys on soon because it's been great. So thank you again.

Speaker D: Thank you so much, Michael.

Speaker B: Appreciate it. All right, take care.

Speaker A: Thank you for listening to the Truth about wealth podcast. Click the subscribe button below to be notified when new episodes become available.

Speaker E: This material is for informational purposes only. Neither OSAIC Wealth, Inc. Nor its representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions. Copper beach is not affiliated with OSAIC Wealth Incorporated. Securities and investment advisory services offered through OSAIC Wealth Incorporated Member FINRA SIPC Additional advisory services offered through Copper Beach Financial Group. OSAIC wealth is separately owned and other entities and or marketing names, products or services referenced here are independent of OSAIC Wealth. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk, and may result in a loss of principle. Past performance does not guarantee future results. Investments are not suitable for all types of investors. Any opinion expressed in the this forum is not the opinions of OSAIC Wealth Incorporated and have not been reviewed by the firm for completeness or accuracy. OSAIC Wealth Incorporated and Copper Beach Financial Group are not affiliated with any other named business entities mentioned.