RIAs Emphasize Systematic Private Markets Programs and Operational Readiness

A LinkedIn post from Allocate highlights a discussion on how registered investment advisors can build systematic private markets programs rather than focusing solely on manager selection. The post references insights from Samir Kaji and Eric Patterson of Three Bell Capital, emphasizing process, structure, and operational readiness for scaling alternatives.

According to the post, maintaining consistent vintage exposure is presented as being as important as manager selection, with missed years described as compounding over time. It also outlines a proposed cadence by asset class, such as 18–24 months for venture, around 18 months for private equity, and roughly annual pacing for private credit.

The post further suggests that operational readiness — including team capacity, sourcing, and due diligence processes — is often a bigger constraint than end-client demand for private markets exposure. It also notes that proprietary fund structures may only be sustainable where fee models are closely aligned with client interests, implying pressure on economics that do not clearly serve investors.

For investors, the content points to growing institutionalization of private markets programs within RIAs and increasing sophistication in portfolio construction and pacing. This trend could support demand for platforms like Allocate that facilitate alternative investments, while also signaling competitive pressure on fees and a premium on operational infrastructure among advisors scaling private markets offerings.