MutualFundWire.com: Restieri Shares GSAM's Plan for Growing Alts

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Tuesday, October 29, 2013

Restieri Shares GSAM's Plan for Growing Alts

Sometimes, paying your dues pays off.

At least that's the philosophy Goldman Sachs [profile] is following as its works to grow sales in its alternative investments business.

"It is about taking our expertise in alternatives—in the hedge fund, private equity and long-only space—and putting it in a package that makes sense for mutual fund investors," said Larry Restieri, head of alternative sales for Global Third Party Distribution within Goldman Sachs Asset Management (GSAM).

Regarding Goldman's alts operations, Restieri had this to say:

GSAM has been in the alternatives business for a very long time. Our AIMS [Alternative Investment & Manager Selection] Group manages one of the largest and most respected fund-of-funds platforms and serves many of the world’s leading institutions.

Our liquid alternatives business marries these manager relationships and due diligence expertise with our large and robust mutual fund platform.

Demand for these alts come from investors who want more stability, he said.

Investors have developed concerns, and rightfully so, about rising rates and their fixed income investments. They also have concerns about volatility in the equity markets. Alternatives can be a tool to manage these risks.

Bringing the portfolio benefits of alternatives to a broader array of clients is really a natural evolution for us.

A key element of alt sales will have to be education, according to Restieri.

The most critical part of this business is education. While we have been in alternatives for 50 years, a lot of investors are new to this category. We are very focused on providing investors with education on these new tools, and how they can benefit their portfolio. We want to people to understand the risks involved, as well.

Restieri said that "I would expect us to continue to expand the platform to serve clients’ growing needs in the space."

“We continually examine expanding our platform, whether through organic growth or through our open-architecture solutions,” he said.

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