🎥 HarbourVest's John Toomey - over 40 years of "earning investors' trust"

Welcome back to the Alt Goes Mainstream podcast.Today’s episode dives into the nuances of private markets with one of the industry’s leaders.We sat down with HarbourVest CEO John Toomey, where he leads a firm that has over $160B in AUM and has over 43 years of experience across primary funds, secondary transactions, direct co-investments, and building customized programs for LPs.John has been at HarbourVest for almost 30 years, joining the firm in 1997 as an Analyst in the Direct team. He spent 10 years as one of the leaders of the Secondary business before serving on Global Investment Committees for nearly a decade. He also served as the original CFO for the HarbourVest Global Private Equity vehicle, which went public in 2007 on Euronext Amsterdam.John is also a member of the Firm’s Conflicts Committee, Sustainable Investing Council, and DEI Council. He received a BA (cum laude) in Chemistry and Physics from Harvard University and an MBA from Harvard Business School.John and I had a fascinating and thought-provoking conversation about the evolution of private markets as an industry. We covered:The biggest differences between private markets in the 1990s and private markets today.How private markets has evolved over the past 30 years.What LPs are looking for today in their manager relationships.Do LPs want more choice or less?Why LPs, both institutions and wealth investors, might outsource private markets capabilities.How the institutionalization of private wealth platforms is shaping how alternative asset managers partner with the wealth channel.Where scale matters for alternative asset managers.Where allocators should be “narrow and limited” with their GP relationships and where allocators should be diversified.What is required for managers that launch and manage evergreen vehicles.The why and the how behind launching a private wealth solutions business.Thanks John for coming on the show to share your wisdom, expertise, and passion for private markets.Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.A word from AGM podcast sponsor, Ultimus Fund SolutionsThis episode of Alt Goes Mainstream is brought to you by Ultimus, the full-service fund administrator and transfer agent powering asset managers in private and public markets. As alts go mainstream, you need real expertise to handle complex fund structures, connect with key distribution partners, and handle sophisticated compliance, reporting, and transparency demands.That’s Ultimus: high-tech, high-touch solutions for over 450 clients and 2,500 funds with $775B in assets under administration. Backed by an expert team of over 1,200 employees, they place client service at the core of their business, helping you navigate complexity during your fund structuring or launch and then supporting you through every stage of growth. Whether you’re already in the market or thinking about entering private wealth, you can trust their team’s deep expertise in retail alternatives to help you reach your goals.Learn more: ultimusfundsolutions.com or email info@ultimusfundsolutions.com.We thank Ultimus for their support of alts going mainstream.Show Notes01:17 Message from our Sponsor, Ultimus02:12 Meet John Toomey04:36 HarbourVest’s Early Days05:34 LP Needs Then Versus Now07:37 Why Outsource Private Markets09:27 Program Approach Explained11:00 Earning LP Trust12:53 Building Blocks And Scale14:20 GP Needs And Access Points17:35 Co-Invest Partnership Model18:54 Middle Market Diversification21:26 Punching Above Weight24:22 Big Or Niche Debate27:25 Investing In Data And AI28:27 Evergreens And Wealth Channel30:34 Scale Needed For Evergreens31:43 Multi Manager Future32:39 Wealth Platform Consolidation33:08 Who Can Build Evergreens34:45 Evergreen Deal Flow Mix36:58 How Wealth Wants Access38:20 Centralized CIO Trend39:21 Manager Selection Matters40:56 Diversification Versus Alpha42:41 Funding From Public Markets45:16 Starting Private Equity Today46:54 Institutional Program Evolution51:13 Institutions Using Evergreens53:16 Liquidity And LP Transparency55:40 What Creates Manager Edge58:54 Non-Obvious Data Insights01:0