Investing in Fixed Income through SMAs: Strategies for Financial Planners

Harrison Street and ABS Investments Launch Private Wealth Divisions: What it Means for Financial Planning

Update New Ventures in Wealth Management: Opportunities for Financial Advisors Harrison Street Asset Management and ABS Global Investments are joining an increasingly competitive landscape by launching private wealth divisions. This strategic move aims to engage financial advisors and their high-net-worth clients, reflecting a broader trend in the alternative asset management sector. Understanding the Landscape of Alternative Asset Management In recent years, alternative asset managers have seen unprecedented growth and diversification. The entrance of Harrison Street, with a robust $100 billion in global assets under management (AUM), marks a significant shift towards catering specifically to the wealth management sector. By creating Harrison Street Private Wealth and appointing a seasoned leadership team from Versus Capital Advisors, the firm is poised to leverage its institutional investing experience to appeal to individual financial advisors. Meet the Leaders Behind the Shift Mark Quam, Bill Fuhs, and Casey Frazier, former partners at Versus Capital Advisors, bring their wealth of knowledge to the new private wealth division. Quam, now the CEO of Harrison Street Private Wealth, emphasizes the integration's potential to combine institutional expertise with personal financial planning capabilities. Under their leadership, the firm aims to expand its advisory services and enhance its distribution capabilities. ABS Global Investments Takes Aim at High-Net-Worth Investors Similarly, ABS Global Investments, with $8.8 billion in AUM, has launched its private wealth management division, hiring Steve DiMaio as its head. With more than three decades of strategic distribution experience, DiMaio’s leadership is expected to significantly elevate ABS's presence in the private wealth sector. His previous role in the RIA channel at Brookfield Oaktree Wealth Solutions equips him with the insights necessary to attract and sustain high-net-worth client interests. Trends in Private Wealth Management The aforementioned developments are not isolated incidents, as other firms such as Greystar and HarbourVest Partners have also enhanced their private wealth teams. The impetus behind this escalation stems from recognizing a growing demand for tailored investment strategies among high-net-worth individuals and the increasing expectation for institutional-quality investment products from financial advisors. These firms are leveraging their institutional backgrounds to appeal directly to individual clients who seek robust, low-risk investment options. Why Financial Advisors Should Pay Attention For financial planners and wealth advisors, these evolving dynamics present unique opportunities. Aligning with firms like Harrison Street and ABS Global Investments enables advisors to access institutional-caliber assets that may previously have been outside their clients' reach. This alignment can strengthen the advisor-client relationship, allowing advisors to deliver enhanced value propositions based on diversified investment portfolios. Looking Ahead: The Future of Wealth Management As the landscape of alternative investments continues to expand, wealth advisors must remain vigilant and adaptable. Being informed about these new divisions provides a competitive edge, allowing advisors to navigate investment opportunities that meet the evolving needs of high-net-worth clients. The integration of institutional strategies into personal wealth management positions these firms at the forefront of a growing market. In this dynamic environment, financial planning professionals are encouraged to continuously seek education and collaboration with these wealth divisions, enhancing their capabilities to serve clients more effectively. Embracing updates in the alternative investment landscape is crucial for wealth management professionals. As Harrison Street and ABS Global Investments continue to grow their private wealth sectors, financial planners should consider integrating these strategies into their planning processes to optimize client outcomes.