Welcome back to the Alt Goes Mainstream podcast. Today’s episode dives into an important and growing part of the private markets ecosystem: how investors can access and invest into alternatives through their retirement funds. We have Eric Satz , the Founder & CEO of Alto , a self-directed IRA custodian, with us today to discuss how he’s on a mission to provide everyday Americans with the same investment opportunity long favored by institutional investors. Alto provides custody for a wide array of alternative assets, including private companies, real estate, crypto, loans, and securitized collectibles. Alto has streamlined the process for companies, funds, and SEC-registered investment platforms to include IRA investors in their offerings. They’ve partnered with firms across the alts space, including AngelList, Coinbase, EquityZen, Republic, Masterworks, and others, to enable investors to invest into private markets with their IRA. Eric is a serial entrepreneur and former investment banker. He worked at DLJ / Credit Suisse First Boston before co-founding Currenex (acquired by State Street for $564M), Plumgood Food, and Tennessee Community Ventures. His passion for entrepreneurship led him to serve on the Board of the Tennessee Valley Authority from 2015 to 2018 and he teaches an entrepreneurship class to high school students. On today’s podcast, Eric teaches us all about the merits of a self-directed IRA. We had a fascinating discussion about why and how it makes sense to use an IRA to invest into private markets investments and how he’s taking lessons learned from prior IRA businesses to build Alto. We discussed: Rethinking retirement investing. The evolution of the self-directed IRA market. Alto’s vision: TurboTax for IRAs. Structural challenges with using IRAs for private markets investments. The role of technology with streamlining retirement investing. The evolution in investor awareness of retirement investing. The importance of duration matching. Thanks Eric for coming on the show to share your knowledge and passion for alternatives. Show Notes 00:00 Introduction: Going Mainstream 00:38 Welcome to Alt Goes Mainstream Podcast 00:52 Introducing Eric Satz and Alto 01:33 Eric's Background and Entrepreneurial Journey 01:57 The Mission of Alto 02:01 The TurboTax for IRAs 02:05 The Importance of Retirement Accounts in Private Markets 02:29 Welcoming Eric to the Podcast 02:37 The Evolution of Private Markets and IRAs 02:51 The Beginnings of Alto 03:13 Challenges in Self-Directed IRAs 03:54 The Vision for Self-Directed IRAs 04:28 Changing Conventional Wisdom on Retirement Investing 05:40 The Demographics of the IRA Industry 06:21 The Growth of IRA Accounts 06:38 The Allocation to Alternative Assets 07:36 Barriers to Private Market Investments in IRAs 07:50 Psychological Barriers to Alternative Investments 08:35 Structural Challenges in Using IRAs for Private Investments 08:53 The Role of Technology in Streamlining Investments 09:02 The Launch of Alto with AngelList 10:05 The User Journey in Private Market Investments 10:43 The Role of Financial Advisors 11:10 Educating Investors on Private Markets 12:25 The Evolution of Investor Knowledge 12:35 The Importance of Tax-Advantaged Investments 13:11 The Financial Advisor's Perspective 14:05 The Benefits of Illiquidity in Private Markets 15:54 The Role of Large Asset Managers 16:17 The Branding of Private Markets 16:45 The Growth of Athene and Financial Advisors 16:57 The Importance of Current Income in Retirement Accounts 17:43 The Younger Generation's Investment Behavior 18:05 The Impact of Evergreen Fund Structures 19:04 The Role of Asset Management Firms 20:02 The Future of Private Market Solutions 20:15 The Role of Alto in Private Market Investments 20:54 The Importance of Infrastructure in Private Markets 21:44 The Evolution of Alto's Business Model 21:50 The Growing Awareness of Private Markets 23:57 The Role of the Alto Marketplace 24:35 The Inclusion of Crypto in IRAs 25:17 The Challenges of Transitioning Assets to IRAs 25:50 The Impact of Friction on Investment Decisions 27:46 The Success of Alto's Technology 28:35 The Role of Funds in Promoting IRAs 29:36 The Future of Private Markets and Wealth Channels 31:11 The Role of Financial Advisors in Private Markets 31:58 Educating Financial Advisors on IRAs 32:13 The Importance of Conferences and Networking 47:13 The Future of Private Markets and Retirement Accounts 47:32 The Role of Regulations in Private Market Investments 50:27 Conclusion: The Potential of Retirement Accounts in Private Markets Editing and post-production work for this episode was provided by The Podcast Consultant .
