Private Debt & The Democratization of Alternatives - Aaron Filbeck Managing Director and Head of UniFi by CAIA™

INVESTOLOGY: re-think investment management

A conversation with Aaron Filbeck about CAIA’s new program Unifi by CAIA, why we need a course focused on Private Debt and how to democratize alternative assets the right way, through education.
Aaron is Managing Director and Head of UniFi by CAIA™
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USEFUL LINKS
Aaron https://caia.org/contact/aaron-filbeck-caia-cfa-cfpr-cipm-fdp-co-chapter-head
Unifi by CAIA https://caia.org/programs/unifi
Private Debt Microcredential: https://unifi.caia.org/?_ga=2.29254777.498243206.1683717981-1667398133.1673049038#/curricula/913376cf-b25b-4fa7-a1bf-ea3555b786db
QUOTES
‘ As an industry, we really try to focus on the product itself. And really tout the benefits of the product and not necessarily what the client was trying to accomplish in the portfolio. As we think about Democratization 2.0, I think we have an opportunity, especially in private markets, to think more about and start with what the client's trying to accomplish and then work our way backwards.
Does the client really need this? Does it actually work to help the client achieve these different objectives? ‘
‘There are a lot of new entrants into this market, whether it's a financial advisor, distribution, staff who are now looking at new products for the first time, that really need more of an understanding of how these things work at a more conceptual level. They're not gonna be an analyst or CIO, but they do need to know enough to ask the right questions, understand the jargon, and understand how these different strategies work.’
'When you look at alternatives broadly, and I think private debt's no exception, the dispersion of outcomes is very wide relative to traditional assets. Some of that is due to manager skill and their ability to deliver. But another piece of that is the style that's being pursued. Like private equity, where you've got different stages of the company's life, you've got different sector focuses. That all leads to dispersion. Private debt is the same in terms of either the strategy, the place in the capital structure, or the type of debt, like distressed debt. There are multiple approaches that you can take.'
TIMESTAMPS
00:00 Teaser
00:32 Introducing Aaron Filbeck, CAIA, CFA, CFP®, CIPM, FDP
01:16 About CAIA
03:04 Unifi by CAIA: bridging the knowledge gap in Alternatives
08:03 Why a course on Private Debt
10:30 The usefulness of private debt concepts for public fixed income investors
12:45 How to approach the debt market as an 'amateur'
14:06 Accessing private debt
15:08 The Paradox of venture debt
18:04 Distressed debt
19:58 Variety of debt instruments and dispersions of outcomes
21:28 The current state of Private Debt and the retreat of Banks
22:17 Discussing a private debt meme (from an FT article)
23:07 Private debt: hype vs opportunity
25:58 The rise of the semi-liquid funds
27:22 Education as a gap between marketing and small prints
28:37 Private debt in portfolio construction
33:10 How can the investment industry navigate the complexity of new asset classes
35:20 On a mission to educate investors
37:45 A renewed professionalism is needed for democratization 2.0
39:09 Conclusion
ABOUT
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