Welcome to another episode of the Alt Goes Mainstream podcast! We’re thrilled to bring you a conversation with a visionary in the field, the Co-Founder and CEO of 73 Strings, Yann Magnan. He’s at the forefront of developing essential valuation and portfolio monitoring software for alternative asset managers, transforming cumbersome manual processes into sleek automated solutions. Leveraging AI, 73 Strings enhances data extraction, portfolio management, and middle-office workflows, much to the benefit of industry leaders like Blackstone, Fidelity International Strategic Ventures, and Broadhaven Ventures.
For those eager to dive deeper, you can catch this episode across major platforms: Apple Podcasts, Spotify, and Transistor.
With Yann’s impressive background at Duff & Phelps and EY’s Transaction Advisory Services, he has been instrumental in integrating innovative solutions into the mainstream. Our conversation touched on several crucial aspects shaping the private markets due to this tech evolution. We explored:
- The hurdles faced by manual valuation services
- Achieving consistency in private market fund performance data
- The impact of AI on post-investment reporting
- Whether automation benefits larger funds or smaller ones more
- The transformation of market structures post-investment
- The critical tech advances still needed in private markets
- How the growth of the wealth channel and evergreen funds necessitates improved reporting and valuation
We’re grateful to Yann for sharing his insights and experiences. Here are some thought-provoking snippets from our chat:
- Standardization in valuation: Can it be achieved?
- AI’s role in qualitative assessment: Can it outperform humans?
- Handling varied reporting metrics: How does 73 Strings manage this challenge?
- Wealth channel and evergreen structures: What does their convergence mean for post-investment processes?
This episode is proudly presented by Ultimus Fund Solutions, a leader in providing comprehensive fund administration services. As private markets gain prominence, the necessity for robust infrastructure to support funds and investors grows. With over 1,000 professionals overseeing $500 billion in assets, Ultimus delivers tailored fund administration and middle office solutions to a diverse clientele. They adeptly assist firms in navigating an intricate regulatory landscape, helping both institutional and retail investors meet their strategic objectives.
To explore how Ultimus can support your firm’s needs with their tech-enhanced services and solutions, visit ultimusfundsolutions.com or reach out to Gary Harris, Executive Vice President of Business Development, at [email protected].
Thanks to Ultimus for championing the movement of alternatives going mainstream.
Show Notes
00:00 Introduction and Sponsor Message
01:56 Welcome and Introduction of Podcast
02:05 Spotlight on Yann Magnan & 73 Strings
03:56 Yann’s Professional Journey
04:05 Inception of 73 Strings
04:35 Delving into Manual Valuation Challenges
05:27 AI’s Role in Valuation
09:43 The Crucial Role of Human Judgment
11:42 Accountability within Valuation Reporting
13:03 Collaboration Dynamics with Service Providers
14:21 Strategies for Handling Diverse Data
15:08 The Drive for Automation & Standardization
16:24 Automation’s Influence on Human Processes
17:44 Wealth Channel Growth & Evergreen Funds
18:44 Accelerating Valuation Needs
19:34 Engaging Retail Investors in Private Capital
20:00 Valuation Frequency & Robustness
20:28 Industry’s Adaptation to Evergreen Structures
20:51 Tech Implications of Increased Valuation Frequency
21:13 Navigating Daily Valuation Practices
21:32 Asset Management’s Tech Infrastructure
21:39 Firm Resilience & Industry Adaptation
21:45 Leading Firms’ Best Practices
22:01 73 Strings Partnership Insights with Blackstone
22:45 Tackling Valuation Process Challenges
23:50 Ensuring Data Control & Standardization
24:11 Expanding Valuation to Various Asset Classes
25:14 Crafting Versatile Valuation Platforms
26:18 Comparing Private Equity & Credit Valuations
26:58 Defining the Atomic Unit of Value
28:40 Enhancing Data Sharing Across Units
31:29 Automating Benefits for Diverse Firm Sizes
32:38 Pricing Models & Value Creation
33:02 Building Solutions for Large Enterprises
35:43 Cultivating Trust in Client Partnerships
36:34 Strategic Investors: A Valuable Asset
39:01 Early Industry Participants & Standardization Efforts
41:04 Addressing Technology’s Maturity & Costs
42:14 Data’s Future in Private Markets
43:30 Blurring Lines Between Private & Public Markets
45:17 Involving Retail Investors in Private Capital
