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Kristin Kallergis Rowland

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64
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2025-05-26
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2025-05-26
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1
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  1. “Most of what we've invested in, we're keeping in significant contact with these managers to watch every investment that they're making, are things shifting, are they doing what we underwrote them to do initially? Folks are questioning this concept of U.S. exceptionalism right now. And so some stuff outside the US has helped us. So we'll just make sure that we're not overweight to any of our long-term targets because we always tell clients, try to build over four to five years. If you only invested in 06, 07, 08, you would not like me. You would actually hate me because those private equity managers are trying to exit most of their positions during the crisis. A lot of what we're doing is making sure that there's no sector overweight beyond really like a 25%. Tech is the one thing that's changing because we no longer really see it as a sector. It's a horizontal. And then we also do like a deal overlap. There's a lot of questions about that in places like private credit. We feel like we started in the upper end upper mid-market, even large cap, you could say. So our next manager was in the core middle market. You go from having an EBITDA out.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  2. “To 25% of the portfolio, even though a lot of folks were digesting what they'd done in 2020 and 2021. So the market maps will say, how do we make sure that we're investing to build a portfolio of four to five years to make sure that every piece is complementary to the existing piece? But you also don't want to work with five managers in the same space that all come back to raise capital at the same time because then you can't have your capital matter to them.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  3. “So after 2021, we recognize that our clients, those who were choosing a la carte, were overweight growth allocations. So we said, should we be investing behind value when capital markets started closing up in 22, we said, should we be allocating to more the mid-market? They use a little bit less leverage, maybe two turns less on average. They have more exit opportunities. They can potentially buy cheaper depending on what their skill set is. So we'll do a market map that says who are the 15 managers that are raising capital today that meet our minimum return threshold that are willing or wanting to partner with us, want the diversification of private bank capital. And we look through it together and we literally go out and just meet all these managers. The last couple years, we are investing in places like Asia, about 10% of our portfolios, even though on an a la carte basis there was less demand from clients. Same thing in growth and venture over the last two to three years. We were still making sure it was 20%.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  4. “Once we commit to doing something where we want to make sure that there's either a portfolio need or client demand, it's probably like a 12 week process of like serious underwrite. And then actually a big chunk of that process is what are the numbers not telling you or from a background check people side who do you want to be in business with for the long term? So it's a pretty rigorous process, but everyone tells you that if you speak to many of our managers who you've had on your podcast, they would say it's pretty intense just because we try to figure out how they're going to treat us in good times and bad. So we'll call their worst portfolio company and their best portfolio company and try to see the difference between the two.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  5. “So we have just over 200 investment professionals. We have specialists that lead every sector, and they're building market maps for where we want to invest. And we have an entire investment review committee process where we're understanding who these managers are out there, what needs they're filling in portfolio, but also the uniqueness of the trade-off in the public side versus the private side. Most institutions fill a bucket. They say, I want to invest X amount in private equity or private credit. Individuals don't. They just want to know what are the absolute returns. So we made a decision in 2013.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  6. “The table formally every week to decide what our views are. I would argue with the credit folks for many years about the value of private credit versus public credit and the value of private equity versus public equity. There's a lot of different models in private banking or wire house models where you have a broker that's deciding at that unique level. We do a more unified approach to building what our views are and then letting clients figure out implementation themselves. And then we also do a daily morning meeting from 8 to 8.30 where we just break apart the markets, figure out where we want to focus on, ask questions like, is now the time to invest in MAG 7 or should you still be thinking about outside the US and stuff like that? But that's a little bit of how it comes together.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  7. “It's all going to be based on client needs, which everyone's going to tell you. Anyone that serves the clients in these areas because a client that's a business owner is going to be very different than a financial institution type client that's going to be very different than someone that's inherited wealth and trying to thinking about how to preserve it. But we do have goals-based planning that we try to understand the needs of a client's portfolio. Do you want income? Do you want higher returns? Do you want a mix? I'm going through the process now. As a client to figure out what are the goals in your portfolio. So I'm answering a bunch of questions. They put it in a proprietary system to figure out what the output of that is and then how you actually want to make decisions and invest will come after. So then how we get organized is we have a whole group that's all about understanding the client. How do you actually make the decisions of building and preserving wealth over time? What are your goals? We have a whole separate group that then they speak to to say what are the components of how we build those things. Do you want to do it yourself? Do you want us to do it for you? All that. And then from the investment standpoint, we have an entire solutions group that we sit at”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  8. “We run a family office report. We started it a couple years ago where we go to the top 200 families. About 25% of it was in pure equities. 46% of it was in alternatives. And the remainder about just over 20% was in fixed income. I started the family office side because fascinating to know that within that 46% of alternatives, 15% was in direct real estate, 17% was in private equity funds, 6% was in hedge funds. If you look across our broad client base, a lot of clients were 60-40, 60 equities, 40, fixed income across the board, it's probably now changing to maybe 45% equities, 15% in alternatives, and the remainder still like fixed income and where you put private credit and which side it will depend. But generally speaking, that's how it's been.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  9. “All of it stems from how do we build great portfolios. And in the private markets, we think about allocating our portfolios half to 70% of it every year is in core private equity. 20 to 25% in growth equity and venture, mostly growth equity, although we've been leaning into venture the last couple years, 15 to 25% is in private debt offerings. We've been doing that since 2007. And then real estate, real assets, more broadly is another 15 to 25 percent. We always try to think of a few years ahead, but we start every year by saying, do we have enough choice in these areas to build portfolios? We can do it for them. We could do it with them. A lot of clients actually do a combination. They'll get their core holdings and then they'll invest a la carte as well.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  10. “We cover a decent amount of those outside the US. And so whether you're investing a couple hundred thousand or tens of millions of dollars, we have to have this suite of products to offer all client bases, which is fun.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  11. “The earnings reports and stuff we'll come out with the almost $3 trillion that we have within that space. Alternatives as a piece of that is significant. It's not as significant as the portfolios that we manage on behalf of clients, which is almost a half a trillion dollars. But a lot of what we do in alternatives, which is about $178 billion, where we allocate a lot of non-JPM organ, but also JPMorgan portfolios is a piece of the portfolios. The client base themselves is what differentiates us. Anyone that has a few million dollars to several billion dollars, if you include our full wealth spectrum, it includes Chase, which is one of two households in America, all the way through to the institutional side. Private bank in particular, we'd been focused for the last many years on families that had anywhere from $5 million of net worth and above. And then those that participated in alternatives, partly by nature of it because they had to be qualified, skewed higher. But we have incredible insight because we cover 1,400 of the 1,900 billionaires in America.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  12. “Was at this sort of turning point about what was the future of it going to be within that region. I got a chance to run our European Middle East business, moved back in 17 to run our U.S. platform, and then in COVID had a chance to take over our global business. So it's been a couple different cities in a couple different countries, but that's been 17 years at JPMorgan.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  13. “It started in 08, just graduated school. I started as a credit analyst in the Chicago office, which is the old bank one where a lot of our credit was done out of. I had always started on the wealth management side as part of the private bank, although there was lots of crossover business to do at the time. And I was a credit analyst for a few years. I thought markets going down 3% to 5% a day was normal. It wasn't, but we were in a fortunate position to be JPMorgan at that time. After two years in Chicago, I moved to New York to work in the office of our head of investments and our CEO. And that was a incredible experience because we were hiring, building new products, especially in the world of alternatives in the sort of 2010-2011 era. We changed the way in which we offered things to our clients. And then in 2013, my then boyfriend of many years, now husband, wanted to go to business school. And so I moved to London in 2013. Tons of change going on in the alternative industry there because of AIFMD and the UK tech status changing.”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source

  14. “JP Morgan's investment approach resembles that of many institutions. With centralized research, manager selection, and portfolio construction that its financial advisors use in client portfolios. KK has spent her entire career in private wealth at JPMorgan, spanning investment functions and global geographies. Our conversation describes JPMorgan's centralized approach to alternative investing for its clients. Recover KK's journey through JPMorgan and the evolution of alternatives within the firm. We discussed the allocation strategies for private equity, private credit, real assets, venture capital, and hedge funds, insights from JP Morgan's family office report, and the importance of portfolio construction tailored to diverse client needs. KK also shares her thoughts on the democratization of access to private markets, innovations in evergreen fund structures, and the”

    2025-05-26 · Capital Allocators · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · IDENTIFIED FROM THE TRANSCRIPT · source