Operational Leaders

After 60 plus episodes and almost two years of covering the operational side of the investment management industry, the time has arrived.  It's time to sign off. Thanks for listening. Thanks for being part of the Operational Leaders podcast.  And thanks for helping make this the best podcast covering the ins and outs of running an investment management business. In the past, I was fortunate enough to work with an awesome set of people who were guided by the highest ethical principle of putting investors first.  Now I have the opportunity to do it again.  How lucky is that. In this final brief episode, I talk about how grateful I am to have meet so many outstanding people from the investment management business, how we’ve been able to tackle some of the thorniest issues in industry and how much I appreciate the support you gave me. Best of luck to you, and let’s keep in touch.

This past season and in prior seasons, guests have graciously lent their industry expertise.  Many have also mentioned some very important charitable causes.  In this episode, we conclude Season Three by welcoming Sumudu Waas, the Acting Executive Director at Help for Children (HFC).  HFC is a global foundation supporting the prevention and treatment of child abuse. Sumudu joins this episode to talk about the mission of Help for Children and the foundation’s deep roots within the alternative investment community.  She highlights some of the key issues surrounding child abuse.  Sumudu also discusses the origins of HFC, how the foundation is organized and distributes grants, and her personal motivation for joining the foundation.  To learn more about the foundation and to consider a contribution, please visit the Help for Children website. Thanks also to all of our Season Three guests and our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.  

Sylvain Forté is passionate about artificial intelligence.  In 2014, he took that passion and co-founded SESΛMm, a company that applies natural language processing –  a subfield of artificial intelligence – to extract billions of articles and messages from the web and turn them into relevant insights for investors. In this episode, Sylvain explains the rise of artificial intelligence and big data and their use in the investment field.  He discusses the various use cases for AI and his company’s natural language processing, from insights on public and private companies to ESG assessments.  He also discusses the extent of his company’s data sets and how different types of clients make use of the information his company provides.  In addition, Sylvain talks about how he started his business, some of the advantages of his company’s location in Paris and its expansion abroad, and the burgeoning FinTech community in France. To learn more about Sylvain and his company, please visit the SESΛMm website. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

As the former Chief Architect at a leading private equity firm, Richard Change saw a gap in data standards, as well as limitations on how firms stored and tracked investment information.  In 2012 he set out as co-founder to start PFA Solutions.  The company now focuses on technology solutions for calculating GP carry allocations and tracking consolidated performance information across fund firms. Richard joins this episode to talk about the ongoing gap in industry-wide data standards and how that creates challenges and opportunities.  He also shares his observations about investor demand for insight and transparency into fund performance and how that trend is driving the adoption of technology.  Richard also discusses the commoditization of IT and the impact of the Cloud.  In addition, he notes some limitations on the use of Excel spreadsheets. To learn more about Richard and his firm, please visit the website for PFA Solutions. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

John Brennan spent nearly 25 years on the buy-side of the alternative investment management industry, include most recently 10 years as the Chief Technology Officer at Highfields Capital.  He now serves as the Chief Strategy Officer at Eze Castle Integration. John joined the podcast as our very first guest.  He returns in this episode to talk about integrating new technologies and the importance of first understanding the underlying business environment.  Along the way, John hits on a number of key topics, including the benefits of technology solutions and the advantage of using consulting firms to identify the best solutions, the importance of developing written technology plans that look to a firm’s future growth, and the need for guardrails when allowing employees to engage in their own coding projects. To learn more about John and his new firm, please visit the website for Eze Castle Integration. Finally, John updates us on some of the latest developments at AITEC, an organization that he co-founded to help technology professionals in the financial services field.  You can learn more about this organization by visiting the AITEC website. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

Elaine Chim heads the private equity product for the Americas and APAC at the Apex Group.  From her position, she maintains a unique view of the market for fund administration and a broader array of client services for private equity firms.  In this episode, Elaine discusses the growing use of third-party administrators by private equity firms.  She explains some of the trends behind this transition, including the importance of technology solutions that larger administrators can provide in scale, the ability to outsource functions that lead to cost savings and the need to follow an ever-increasing amount of regulations across multiple jurisdictions.  Elaine also talks about future developments and her belief that monthly and quarterly letters will become obsolete and replaced with real-time reporting.  She concludes the episode with a brief description of the ESG impact on private equity, some of the related Apex products, and a plug for the Apex partnership with the Eden Reforestation Projects. To learn more about Elaine and her firm. Please visit the Apex Group website. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

Jersey Finance celebrates its 20th year as a member organization formed to champion the competitive position of Jersey's finance industry.  The celebration coincides with the Island of Jersey’s 60th anniversary as a leading finance center.  In this episode, Jersey Finance Deputy CEO, Amy Bryant, and Legal and Technical Manager, Peggy Gielen, discuss the merits of Jersey for investment fund domiciliation.  They talk about the origins of Jersey as a finance center and its investment funds focus.  Amy and Peggy emphasize Jersey’s benefits, including professional expertise, political and fiscal stability and a consistent outlook from a regulatory, legal and economic perspective.  Amy and Peggy note Jersey’s status as a UK crown dependency, but that it is a self-governing parliamentary democracy.  As a result, Jersey avoided the UK consequences of Brexit and also provides a gateway into Europe and the rest of the world to access investors. To learn more about Amy, Peggy and their organization, please visit the Jersey Finance website. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

The ability to raise capital is fundamental to the success of any investment management firm.  Evan Katz often stands in the middle of that effort, serving as Managing Director of Crawford Ventures, a firm dedicated to helping hedge and PE funds grow, thrive and raise substantial investor capital. In this episode, Evan talks about his role advising firms looking to raise capital.  He shares his observations about some basic fundraising principles, tips and best practices, and why some managers are much more successful than others.  He discusses the importance of founders investing in the operational side of their business, including hiring the best possible fundraiser and the best possible executive team.  He also notes the importance of targeting the right allocators for a manager’s size and strategy, rather than casting a broad net.  Evan also describes why he thinks the use of a “Founders’ Class” is a bad idea. To learn more about his firm, please visit the Crawford Ventures website. Evan closes out the episode speaking about a very important charity where he volunteers his time and talents – Help for Children (aka Hedge Funds Care) – an organization focused on the prevention and treatment of child abuse. And as always, thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

Shaun Murray helps lead Margin Reform, a UK-based consultancy focused on helping clients address margin, collateral and legal issues in the derivatives, repo and securities lending space.  He joined Margin Reform as CEO in 2019, teaming up with former colleague Chetan Joshi, the firm’s founder and COO. In this episode, Shaun provides some background on the development of the derivatives market and particularly the impact of the 2008 financial crisis. He explains how the crisis led to increased regulation and transparency and also changed how firms viewed collateral and the use of margin.  Shaun also discusses how firms manage risk through internal controls and how they internally track and allocate the costs of borrowing.  Along the way, Shaun adds a few insights on building and running a successful consultancy. To learn more about Shaun and the firm, please visit the Margin Reform website. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.  

In November 2019 James Newman and his business partner, Quentin Thom, left their in-house positions and founded perfORM Due Diligence Services.  Their firm is an innovative, flexible and technology-driven ODD service, and the first of its kind in the UK. In this episode, James talks about how he and Quentin saw the need for an independent third-party ODD service and what led them to create perfORM.  He also discusses the types of assignments investors request and how those assignments have become more customized over the past few years.  James describes the impact of the COVID pandemic, how the ODD process responded and how some new aspects might be temporary and others permanent.  In that light, he notes the increasing role of technology in the ODD process.  James concludes the episode with a few tips on how managers can work with ODD teams to make the best possible impression. To learn more about James and his firm, please visit the website for perfORM Due Diligence Services or check out their LinkedIn page. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

More than twenty years ago, Brian Davis left his legal practice and became one of the top legal recruiters in the profession.  He focused his talents on financial services and later became a recognized pioneer for concentrating his work in the alternative asset space.  Today, Brian serves as the Managing Partner in New York for Major, Lindsey & Africa, the world’s premier legal executive search firm. In this episode, Brian shares his perspective on the alternative asset management industry.  He discusses the hiring process for in-house counsel and the critical importance of finding the right cultural fit.  He also describes the skills that make a candidate a successful hire, including the importance of listening. Brian observes some of the changing trends in the industry that are reflected in the demand for legal talent.  He concludes with a few tips for both candidates and firms looking to hire. To learn more about Brian and his firm, please visit the website for Major, Lindsey and Africa. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

John Phinney has held almost every C-Suite position in the investment management industry.  He has seen some of the best practices - and the worst - on the operational side of the business.  In 2013, he left the in-house world behind and co-founded Convergence, Inc., a firm committed to filling a void in data, research and analytics coverage of the Alternative Investments space. In this episode, John shares experiences and insights from his noted career.  He talks about the importance of “tone at the top” for any firm to achieve sustained success, the correlation between the quality of a firm’s regulatory filings and its commitment to operational soundness, and how financial crisis are typically brought on by bad actors exploiting regulatory cracks in the system.  John also discusses how data and analytics can be a helpful tool in identifying potential problems and improving the efficiency of a firm’s internal operations. To learn more about John and his firm, please see the Convergence website.  Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

John D’Agostino is one of the industry’s leading experts on cryptocurrency.  He sits on the board of several of the industry’s largest crypto-focused hedge funds, leads the Digital Asset Working Group for AIMA and much more.  He is also the former Head of Strategy for the New York Mercantile Exchange. John joins this episode to provide an overview to digital currency.  He explains what people typically mean when they refer to “crypto,” and why a single definition can prove elusive.  John talks about the origin of digital assets, how the market has evolved and some basics mechanics behind investing in the asset class.  He also shares his advice on the immediate steps a Chief Operating Office should take if his or her firm decides that it’s time to invest in cryptocurrencies. John can be contacted through LinkedIn.  He’s the John D’Agostino with NYMEX blue in the background. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

Michelle Noyes serves as a Managing Director and Head of the Americas at the Alternative Investment Management Association (or AIMA), where she has worked since 2012.  In this episode, Michelle provides an inside look at the industry’s top global trade associations and some of the challenges the organization faced and overcame this past year.  In particular, she describes the goals of AIMA and how the organization set about fulfilling them on a remote basis, AIMA’s quick pivot after COVID to the use of digital technology to provide critical information and quality content, and some of the trends AIMA is seeing on the operational side of their member firms. To contact Michelle and to learn more about AIMA, its content and events, please visit the AIMA website. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

In 2001, David Lewis founded a one-person consulting practice that has since grown to become OperationsInc, one of the largest HR consulting practices in the U.S.  When the COVID pandemic hit nearly twenty years later, David and his team set out to become nationally recognized experts on all matters related to managing companies through the crisis and its eventual aftermath. In this episode, David discusses the crisis and some critical early lessons.  He then shares his thoughts on why compensation arrangements are harder to predict in the near term than in the medium term.  David also talks about how COVID forced the move to a work-from-home model, why it will become a permanent option, how it changes the employer-employee dynamic, and why firms need to make the option a key consideration when it comes time to re-opening offices. To learn more about David and OperationsInc, please visit the firm’s website. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

A key to every successful investment management firm is the ability to attract and retain capital.  And that key begins with a story.  Kathleen Muir, founder and CEO of the Muir Network brings her twenty plus years of experience in the alternatives industry to help managers develop and communicate their story or their brand.  In this episode, Kathleen talks about lessons learned from her experience as both an in-house branding and marketing specialist as well as a trusted outside adviser.  She explains the importance of developing a narrative that cuts through all the data, images and content, and helps form a personal connection with investors.  She also provides advice on strategic steps for developing a strong brand and some of the pitfalls to avoid. To learn more about Kathleen and her consultancy, please visit the Muir Network website. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

Ron Biscardi has spent the better part of his career in finance focusing on connecting investors and managers.  Along the way, he built the world's largest capital introduction conference. In 2020, Ron saw the impact of the global pandemic and the resulting food insecurities that impacted so many.  He decided to combine his ability to connect people with charitable efforts to address hunger issues.  The result was iConnections, a software platform that serves the alternative investment world bringing together allocators and managers. In this episode, Ron tells his story – how he got started in the alternatives industry, the challenges of building a business and the circumstances that led to the creation of iConnections.  He also offers up a few insights along the way for start-up managers looking to raise capital. To learn more about iConnections and the firm’s upcoming charity event in May, titled Funds4Minds, please visit the iConnections website.   Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

Mark Fordyce had an idea to create a firm that provides a full suite of outsourced services to alternative investment managers.  Then he executed on it.  The result - in 2009 Mark co-founded Blue River Partners which has since grown to become the preeminent outsourced service provider to the alternative asset management industry. In this episode, Mark talks about starting and growing Blue River Partners and a key early decision to combine legal and compliance support with accounting and operations.  He also discusses the advantages to outsourcing, the trend and gradual acceptance of the outsourcing option.  Along the way, Mark describes the recent acquisition of Blue River Partners by global Investor Services provider IQ-EQ and what that will mean for Blue River and how it reflects ongoing changes in the industry. To learn more about Mark and Blue River, part of IQ-EQ, please visit the company’s website. Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.

After spending the better part of his 20-year career at top multinational law firms, Rich Chen decided to strike out on his own.  In 2019, he started the boutique law firm of Richard L. Chen PLLC.  He focuses on providing legal and business advice to investment management firms. In this episode, Rich discusses his career path, the vision for his legal practice, and why he believes that leading his own firm offers the best way to channel his passion and expertise to help clients.  Rich adds his thoughts about the potential advantages a boutique law firm can offer clients.  He then makes some suggestions for how investment managers can find a firm that fits their needs.  A two-time Harvard graduate, Rich switches gears a bit to describes how he uses technology to improve efficiency and better deliver client services.  Outside the office, Rich participates in a number of charitable activities, including on the Board of Open Hands Legal Services.  This not-for-profit organization provides free legal services to those in need in New York City.  To learn more about the charity, please visit the Open Hands Legal Services’ website. To learn more about Rich and his practice, please visit his firm’s website.

Grace Reyes has become one of the most prominent voices in finance when it comes to promoting diversity and inclusion in the investment industry.  In 2020 she founded The Investment Diversity Exchange (TIDE) to focus on these goals and create a united voice for diversity. In this episode, Grace talks about her career in finance and some of her experiences that lead to the creation of TIDE.  She also discusses a core mission of TIDE to connect asset owner with managers to expand the scope of investment considerations.  In addition Grace provides some helpful advice on networking and the importance of authenticity. TIDE promotes its mission through regular conference events, including its annual event in June.  To learn more about Grace, TIDE and upcoming conferences featuring some the investment industry’s biggest movers and shakers, please visit the TIDE website.   Thanks also to our sponsor, DiligenceVault, creators of the first two-sided digital ecosystem for asset managers and allocators.