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Stephanie is a Partner and Portfolio Manager at Evercore Wealth Management, managing investment assets for families, foundations and endowments.
Stephanie is the Chair of the firm’s External Manager Selection Committee, which is responsible for the selection, due diligence and ongoing monitoring of all third-party investment managers.
Stephanie joined Evercore in 2014 from Brandywine Group Advisors, a multifamily office, where she worked for eight years as an investment director, responsible for all aspects of the investment process. She previously worked at J.P. Morgan for seven years, focused on alternative asset management and private banking. She has significant experience in managing portfolios for high net worth individuals and families that invest in both alternative and traditional asset classes, including public equity, fixed income, hedge funds and private equity strategies.
Stephanie received her B.A. from the University of Colorado and her M.B.A. from Rice University’s Jones Graduate School of Business. Stephanie holds the Chartered Financial Analyst designation.
Illiquid alternatives is an umbrella term for different types of investment strategies that range from venture capital and private equity, to illiquid credit strategies, to investments in real estate and infrastructure projects. Many of the portfolios that we manage have a 5%-20% allocation to these illiquid assets, as these investments have the potential to generate strong returns relative to traditional asset classes.
An optimal allocation should have exposure to multiple strategies and diversification across vintage years, industry sectors, stages of investment and geography. In addition, illiquid portfolios can be structured so that maturing investment proceeds can be reinvested in similar strategies, allowing the pacing to become self-perpetuating. As with any investment, illiquid alternatives should be evaluated in the context of each qualified investor’s risk tolerance, liquidity needs and investment horizon.
Investors should consider adding illiquid assets to their portfolio that have the potential to provide diversification and alpha opportunities:
Illiquid alternative strategies can be attractive additions to a portfolio for qualified investors comfortable with a degree of complexity. They are long-term investments that may take a decade or more to return capital. The fee structures are generally higher than for stocks or bonds, and the timing of capital calls and distributions is unpredictable. Illiquid alternative investments also often have more complicated tax filing and require extensions. Investors rightly expect a premium return to compensate for this lack of liquidity, such as the potential to outperform public markets by at least 300-500 basis points, along with portfolio diversification.
Even investors who are older should consider illiquid investments, as they can be a valuable tool in estate planning. For other investors with compressed timelines or other constraints, illiquid alternatives may not be suitable. But for many high net worth investors, foundations and endowments, these investments offer the prospect of enhanced returns and diversification.
Stephanie Hackett is a Partner and Portfolio Manager at Evercore Wealth Management. She can be contacted at stephanie.hackett@evercore.com.
Volume 44 of Independent Thinking® by Evercore Wealth Management examines the impact of global events, inflation, and technological advancement on markets and long-term financial planning.
The publication analyzes how the Russia-Ukraine conflict and its geopolitical ramifications may influence inflation, energy prices, and investment opportunities, particularly in Europe. It explores the differences between today’s inflationary environment and that of the 1970s, highlighting the roles of productivity, demographics, and wage dynamics.
The issue also discusses the ongoing dominance of technology in driving market performance and the importance of regularly revisiting financial goals in a volatile world.
Throughout, the emphasis is on maintaining a disciplined, long-term perspective and adapting strategies to emerging risks and opportunities.
Investment and Wealth Management services are provided by Evercore Wealth Management, LLC an investment advisor registered with the U.S. Securities and Exchange Commission (the "SEC") under the Investment Advisers Act of 1940. Registration with the SEC does not imply a certain level of skill or training. Trust and custody services are provided by Evercore Trust Company, N.A. a national trust bank regulated by the Office of the Comptroller of the Currency.
Client retention rate is based on data from 06/30/24 – 06/30/25. Assets under management are as of 06/30/25
