Episode summary
Episode 23: One on One with Guest Tony Davidow, CIMA®
Alternative Allocations
· · Hosts: Tony Davidow · Guests: Julia Giordano
Summary
Julia Giordano turns the interview around and talks with Tony Davidow about his second book, Private Markets, Building Better Portfolios with Private Equity, Private Credit, and Private Real Estate. Davidow says the book grew out of years of field questions from advisers and from his own career experience across family offices, Morgan Stanley, entrepreneurial companies, and a private equity-backed startup. His core point is that private markets have long been important to patient capital, and that advisers should understand them as part of a long-term allocation framework.
He argues the wealth channel is still early in its adoption of alternatives. Davidow says allocations have hovered around 5% to 6% for two decades, while institutional portfolios have gone further, and he sees the current moment as better than before because wealth-focused products and top managers are more accessible. He also says the book is meant to help advisers explain jargon, use case studies, and move from curiosity to practical portfolio construction.
Davidow also frames the book as a guide for lifelong learners in advisory practices. He highlights goals-based investing, modern portfolio theory, and a total portfolio approach, while also looking ahead to more niche private-market strategies and broader use in retirement plans. The conversation closes with a more personal note on family, golf, and his life in Punta Cana.
Key takeaways
- Davidow says advisers are still in the "early innings" on private markets, with allocations stuck around 5% to 6% for two decades.
- He argues the wealth channel now has better access to world-class private-market managers and products built for advisers.
- The book is aimed primarily at sophisticated advisers, but Davidow says even skeptics should become conversationally proficient.
- Davidow says the book emphasizes portfolio construction, including goals-based investing, modern portfolio theory, and a total portfolio approach.
- He expects private markets to become more granular and more common, including in retirement plans.
Notable quotes
“we now have access to world-class managers. So if we had really good products but we didn't have access to the best of the best managers, we wouldn't get the same experience”
“I think every advisor needs to have a point of view on private markets. Clients more and more are demanding that adviserss either have them on their menu or can explain to them why they don't”
“I wanted to not only talk about where we've been, but also project a little bit about where we are”
“my primary audience is for the sophisticated adviser who is either allocating or trying to refine how they allocate capital”
How the episode opens
This is Alternative Allocations by Franklin Templeton, a monthly podcast where we share practical, relatable advice and discuss new investment ideas with leaders in the field. Please subscribe on Apple, Spotify, or wherever you get your podcast to make sure you don't miss an episode. Here is your host, Tony Davidau.
Welcome to the latest episode of the Alternative Allocations podcast series. We're going to try a different format today. Normally, my producer, Julia Jordano, is sitting quietly next to me and helping my guest and I get comfortable and going through an outline of what we're going to cover for the day, but we're going to try a different format.
Julia is going to interview me today. So, Julia, the table is all yours.
Thank you, Tony. I'm very excited to do this. So, the reason why we have turned the tables today is Tony has just released his second book called Private Markets, Building Better Portfolios with Private Equity, Private Credit, and Private Real Estate.
And I thought it would be a great idea if we could take some time to talk to him about it, learn a little bit more about Tony. I know every episode we learn a lot about our guests and their experience, and we haven't had a lot of time to learn about Tony and why he is such an esteemed guest and why we're lucky to have him. So to start off, can you just provide to the audience a little bit more background on where you came from, why you're in this industry, how it shaped your views regarding the private markets, and just give a little bit more insight into your experience.
Yeah. So it's funny. Normally when I'm on stage, I'll typically tell the person introducing me, please don't go through the whole bio because it makes me feel old.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- private markets
- private equity
- private credit
- private real estate
- wealth management evolution
Companies and tickers mentioned
- Franklin Templeton
Watch the episode
Watch “Episode 23: One on One with Guest Tony Davidow, CIMA®” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Alternative Allocations, this episode and its artwork belong to Franklin Templeton. Octagon is not affiliated with the show; this page is an independent summary.
