Episode summary
Building Private Markets Programs for RIAs with Opto Investments
Dakota Live!
· · 1 hr 3 min · Hosts: Robert Morier · Guests: Matt Malone
Summary
Matt Malone says Opto Investments was built to solve a practical private-markets problem for RIAs: access to managers, portfolio construction support, and the operational infrastructure to run the program. He describes Opto as a private markets platform for RIAs, family offices, and private banks that combines sourcing and diligence with technology, legal, tax, audit, and back-office support. A central theme is that advisers are moving away from one-off alternative bets toward a portfolio-first model that fits alongside public-market allocations.
Malone’s background explains why Opto’s process is unusually structured. After years as an attorney and then an allocator at FS Investments, he says he learned to look past the deck, focus on incentive alignment, and evaluate strategy, sponsor, and structure together. He argues that many managers look good on paper, but diligence should start with underlying materials and the legal and operational details, not the marketing pitch.
He also says Opto’s compensation model is designed to avoid paid distribution conflicts, because the best or most niche managers often will not pay for shelf space. That helps preserve access to a broader opportunity set. On product design, he says Opto is skeptical of continuation vehicles, and that a recent AI fund was structured as a hybrid of venture funds and co-investments to capture earlier-stage upside while keeping the vehicle disciplined and aligned with early investors.
Key takeaways
- Matt Malone says Opto is designed to help RIAs build integrated private markets programs, not just place isolated trades.
- He argues that diligence should start with the underlying materials, because decks usually present the best possible version of a manager.
- Malone says the three key diligence checks are strategy, sponsor, and structure, and weak alignment can show up in fees and incentives.
- He says Opto does not get paid to distribute product, which helps avoid filtering out high-demand or niche managers that will not pay for shelf space.
- Malone says Opto is skeptical of continuation vehicles and generally prefers fresh transactions with clearer third-party pricing.
Notable quotes
“don't look at the deck first. Just look at the underlying stuff first and then see what the discrepancies are”
“we're everything from idea generation to execution in private markets. We can be a fully, you know, if you use all those pieces, we are a turnkey platform”
“I think of due diligence in three S's. I like threes and alliteration. Another thing good sales people number”
“the juice may not be worth the squeeze”
How the episode opens
Welcome to the Dakota Live podcast. I'm your host, Robert Morier. The goal of this podcast is to help you better know the people behind investment decisions.
We introduce you to chief investment officers, manager research professionals, and other industry leaders to help you sell in between the lines and better understand the investment sales ecosystem. If you're not familiar with Dakota and our Dakota Live content, please visit our website at dakota.com. Before we get started, I need to read a brief disclosure.
This content is provided forformational purposes and should not be relied upon as recommendations or advice about investing in securities. All investments involve risk and may lose money. Dakota does not guarantee the accuracy of any of the information provided by the speaker who is not affiliated with Dakota.
Not a solicitation, testimonial, or an endorsement by Dakota or its affiliates. Nothing herein is intended to indicate approval, support, or recommendation of the investment adviser or its supervised persons by Dakota. Today's episode is brought to you by Dakota Marketplace.
Are you tired of constantly jumping between multiple databases and channels to find the right investment opportunities? Introducing Dakota Marketplace, the comprehensive institutional and intermediary database built by fundraisers for fundraisers. With Dakota Marketplace, you'll have access to all channels and asset classes in one place, saving you time and streamlining your fundraising process.
Say goodbye to the frustration of searching through multiple databases and say hello to a seamless and efficient fundraising experience. Sign up now and see the difference Dakota Marketplace can make for you. Visit dakotamarketplace.com today.
Our guest today is Matt Malone, president and head of investment management at Opto Investments, a private markets platform that helps registered investment adviserss, family offices, and private banks build, fundra for, and manage their own private markets programs.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- private markets programs
- ria private investments
- due diligence process
- continuation vehicles
- artificial intelligence for investing
Companies and tickers mentioned
- Opto Investments
Watch the episode
Watch “Building Private Markets Programs for RIAs with Opto Investments” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Dakota Live!, this episode and its artwork belong to Robert Morier. Octagon is not affiliated with the show; this page is an independent summary.
