Episode summary
Monthly Alts Pulse Ep 14: Taking the pulse of private markets with Lawrence Calcano, iCapital.
Alt Goes Mainstream
· · Hosts: Michael Sidgmore · Guests: Lawrence Calcano
Summary
Private markets in the wealth channel have moved beyond basic access and into a phase of customization, differentiation, and portfolio construction. Lawrence Calcano argues that firms are now asking for bespoke programs that serve hundreds of advisers, not just a few dozen, and that this is a positive shift because it improves the fit between products and client goals.
He lays out iCapital’s view of the industry in three phases: first, automated access to alternative managers in the right bite sizes; second, broader product access across hedge funds, registered products, direct investments, and structured notes; and third, an operating system that lets firms build unique products with data, diligence, and end-to-end automation. In that third phase, he says models, evergreen structures, and hybrid public-private products are all tools for tailoring exposure to different client needs.
The discussion returns repeatedly to diligence, education, and advisor workflow. Calcano says private equity returns can differ by 1,000 basis points between top and bottom quartile managers, so selecting managers and understanding how returns are generated is essential. He also argues that the business “starts and stops at the advisor’s desktop,” meaning advisors must be educated and equipped with the right information, technology, and portfolio context before clients can benefit.
Key takeaways
- Lawrence Calcano says the wealth channel has moved from simple access to customization, with firms now building bespoke programs for hundreds of advisers.
- He frames iCapital’s evolution in three phases: access, broader product expansion, and now an automated operating system for unique private-market solutions.
- Calcano says diligence is essential because the spread between top and bottom quartile private equity managers can be 1,000 basis points.
- He argues that advisers differentiate through fit, education, and access to the right mix of managers, models, and evergreen products.
- He says private-markets adoption depends on high-quality data and technology that help advisers evaluate portfolio fit over time.
Notable quotes
“Now it feels like we're at the point of customization and differentiation”
“the seeds of this have been in place for several years”
“the difference between the sort of top quartortile manager and the fourth quartile manager in a private equity strategy could be a thousand basis points”
“this business really starts and stops at the adviser's desktop”
“models is a way of customizing an exposure for a GP for an adviser to get access to products for their clients”
How the episode opens
Welcome back to the monthly alts pulse. I'm Michael Sigmore, co-founder and partner, Broad Haven Ventures and founder of the Alco mainstream podcast. Today I'm joined by I Capital Chairman and CEO Lawrence Galano.
Michael, great to see you. I think we have a really interesting topic to discuss this week and it's based on some recent developments in the wealth management space. So if you think about kind of one of the trends that seems to be a really big theme in the space right now, it's customization and differentiation.
So Sarity large wealth management firm acquired agility in OCIO. High Tower recently took a large stake in NEPC another OCIO. I think that brings up a really interesting question of the context of where we are in private markets for the wealth channel because yeah, a while ago it felt like it was just access.
How do you get access? Now it feels like we're at the point of customization and differentiation. So I'd love to hear your thoughts on that.
Yeah, look, I I think for sure we're seeing that. I the truth is the seeds of this have been in place for several years. For many years, RAAS have come to us and said, "We're interested in this kind of exposure.
We like this kind of credit strategy or equity strategy or real estate strategy. What are you seeing? Can you build something for us?
You know, apart from what might have been on our menu and so we've been seeing that happen episodically for years. And what's happening now, particularly as these firms get much larger, is they want to really build bespoke programs for their adviserss that that really speak to customizing for what used to be 30, 40, 50, 100 adviserss that's now hundreds of adviserss if not larger and they want to build something that really works for their entire advisor base.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- private markets evolution
- customization vs access
- private markets data
- advisor adoption of alts
- ocios and wealth manager integration
Companies and tickers mentioned
- iCapital
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Alt Goes Mainstream, this episode and its artwork belong to Michael Sidgmore. Octagon is not affiliated with the show; this page is an independent summary.
