Demand from qualified investors for alternative investments continues to grow, and firms supporting advisors with sophisticated practices and clients need to deliver meaningful alternative trading platforms to address this demand or risk losing business to firms that do.
Robert Walter, president of Sanctuary Wealth’s broker-dealers and RIA, focuses much of his time building and growing the firm’s advisor service platform. His team has seen a meaningful increase in requests from its network of advisors who are looking for a range of alternative investment vehicles.
Alternatives Watch spoke with Walter ahead of Sanctuary’s annual conference to learn more about his experiences creating and managing a robust investment platform, including an expanding alternatives presence, that advisors can leverage to support their clients.
AW: According to your marketing materials, your typical advisor caters to a sophisticated, high-net-worth client base. Have you seen an increase in demand for alternative investment vehicles in recent years from this population?
Walter: There has been a pronounced increase in requests for alternative investment vehicles from our advisors’ clients, which aligns with trends we’re seeing in the broader wealth management space. Our customized alts platform and strong investment team support our advisors in delivering a broad array of carefully vetted solutions in this area.
The high-net-worth clients our advisors serve are seasoned investors and understand the value of diversification. Alts’ historic low correlation to traditional asset classes and potential for outsized returns make them an important component in a long-term investment portfolio for suitable clients.
AW: What seems to be the most popular alternative for your affiliated advisors?
Walter: As the retail market continues to make headway into the alts space, private credit continues to resonate across the wide array of sub-sectors within that arena. In a volatile, high-rate environment, private credit offers a good inflation hedge. It’s important to note that even though most of the private credit vehicles we offer are first lean with floating rates, with the headwinds impacting the economy, due diligence and selectivity are key.
AW: Next week advisors from across your network will attend your Oasis national conference. What do you think will be top of mind for them as you all gather in Las Vegas?
Walter: The theme of this year’s conference is “EVOLVE.” Given the changes we’re seeing throughout the industry – from technology and new products and services to private equity and deal structuring — evolution needs to be top-of-mind for all of us.
Our advisors will be looking for insights into our platform’s investment solutions and tech stack enhancements. They what to hear where we are investing our time, talent and resources, and why. Our advisors are entrepreneurs in an increasingly competitive environment, so they will be extremely interested in learning more about our practice management and leadership development initiatives.
We’re here to help our advisors realize their goals. While they want to hear from our leadership team about where we see the firm over the next five, 10 and 20 years, we want to get their feedback on how we are doing on our commitment to ensure they can grow faster at Sanctuary than anywhere else.
Sanctuary is home to some of the highest quality advisors in the business. Many were top wirehouse advisors who chose to join our “Partnered Independence” model. So, when they get together, they take advantage of the opportunity to network, pick each other’s brains and bring back actionable ideas they can immediately put in place back in their practices. . This is what they’re looking for and it’s what they are going to find at Oasis 2023.