NEW ORLEANS—The Alternative & Direct Investment Securities Association (ADISA), which has more than 4,000 members representing more than 30,000 investment professionals, recently concluded its Spring Conference held in New Orleans. With members involved in various aspects of alternative investments, including product sponsors, securities broker-dealers, registered investment advisors, due diligence providers, and law firms, ADISA was founded over a decade ago and originally focused on 1031 Exchange products. Since then, the association has expanded to encompass most alternative product types: REITs, BDCs, energy, private estate and private equity.

In the exclusive commentary below, Tim Witt, Concorde director of research and due diligence officer, provides GlobeSt.com with insights, trends and topics from the ADISA 2017 Annual Conference and Trade Show.

The views expressed below are Tim Witt's own.

I always find it interesting after a conference to reflect on the trending conversations, concerns and insights that I heard during my time there—and ADISA's Spring Conference proved to provide many takeaways.

Much of the first day was focused on educational sessions that ranged from introductory topics geared toward newer members in the alternative space, to more complex topics. The association has always had a strong educational focus, and Concorde (my firm) has benefitted over the years from these efforts. A U.S. Senator was scheduled to provide the keynote address on opening day, but due to minor health issues, his deputy chief of staff spoke. Despite this change, the session proved valuable. As a former legislative director on the Hill, I know staffers have deep knowledge of specific policy issues and regularly meet with key stakeholders.

The morning of the second day featured a legislative and regulatory update with representatives from two regulatory bodies: FINRA and the North American Securities Administrators Association (NASAA). The FINRA representative has attended the association's conferences for over a decade, and I have found he always provides meaningful insight and is willing to listen to members' concerns. The representative from NASAA spoke about a few priorities, including the move to electronic documents for investment subscriptions, cybersecurity and protecting seniors from financial fraud. The remainder of the day offered 21 different breakout sessions, with topics including broker-dealer/RIA issues, alternative investment trends and technology.

The highlight of the last day was the CEO All-Star Session, which included several product sponsor CEOs participating in an election-style debate. Among a few friendly jabs, there was a serious discussion on the opportunity and potential threats of various real estate asset classes. The panelists addressed several issues: Are we facing a retail apocalypse? Are hotels attractive at this point in the economic cycle? Is there an over-supply of apartments? How are Millennials impacting office properties? My politically correct conclusion is that all the “candidates” won the debate.

The overall mood seemed more positive than the association's 2016 fall conference. Many people I spoke with expressed hope for stronger economic growth under the new administration. Greater GDP growth is positive for real estate, as landlords can increase rents. There was also a sense that the regulatory environment will moderate, including modifications or a repeal of the DOL fiduciary rule.

While I agree with the fiduciary rule's ideals—putting clients first with more transparency around fees—I do not agree that the 1,023-page rule is prudent for investors. The rule would result in higher costs, which would likely be passed on to investors and discourage investment professionals from helping smaller investors. And, like in any industry, heavy-handed regulations from D.C. tend to benefit large, established players who have greater resources than startups and smaller competitors. I find it difficult to envision less competition being in the best interest of investors.

In closing, I appreciate the efforts of many individuals to produce a successful conference. Each event requires many hours of work from a large group of volunteers. I look forward to the association's remaining 2017 events – the Due Diligence Forum in July and the Fall Conference in October.

The views expressed below are Tim Witt's own.

Instant Insights /

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