Hello, I'm Ted Sides, and this is Capital Allocators.

This show is an open exploration of the people and process behind capital allocation.

Through conversations with leaders in the money game, we learn how these holders of the keys to the kingdom allocate their time and their capital.

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All opinions expressed by TED and podcast guests are solely their own opinions and do not reflect the opinion of capital

allocators or their firms. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Clients of capital allocators or podcast guests may maintain positions and securities discussed on this podcast.

30 years ago, institutional investors held most of their assets in stocks and bonds.

David Swenson led a movement to an approach to portfolio management that broadened the asset

mix to alternative investments, including hedge funds, private equity, venture capital, and real assets.

These days, almost every institutional portfolio incorporates

significant allocations to alternatives to produce better outcomes with similar risk or similar

outcomes with lower risk. However, capital in the hands of individuals has not yet followed suit.

Private wealth portfolios, particularly the so-called mass affluent,

typically hold only 2 to 5% of their assets and alternatives, compared to a range of 20% to 50%

for institutions. But that's changing quickly. Innovations and structure have allowed individuals

to access alternative strategies

at lower minimums with liquidity options not previously available. According to Artos

partners, the six largest private banking and wirehouse platforms committed $110 billion

to funds last year, approximately twice the amount invested from the six largest

institutional investors in North America.

And those flows are just beginning.

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