Peter Lacaillade

But in general, I think you get real adverse selection doing private investments through those platforms because they have fee arrangements with these firms.

and they will only put a firm on the platform if there's some fee share and the best funds are heavily oversubscribed and don't take wealth management dollars there are exceptions but in general you have an adverse selection of funds on wealth management platforms my advice to my friends who ask me what to do is like maybe there's certain credit funds if you go plain vanilla on something like that you can be fine you not get hurt but like

I don't think in the areas where there's a lot of alpha in the market, small buyouts, venture capital, those are non-existent really on the large private wealth platforms at the banks.

And you just don't know, you're like, why am I being shown this?

There are fees and incentives and conflicts involved in most things that are being shown to the clients.

They're showing something because they got a deal.

But if you think of a large cap buyout world, there's some firms that are oversubscribed in one and dones and are really great firms with great cultures and are very hard to access.

And they probably don't have much dollars, if any, from the wealth management channels.

That's just a fact.

And then there are others, they don't want to do that because they'd have to pay the bank.

It's like a placement agent fee.

It might be 50 basis points or 100 basis points.

of management fees, something like that.

Whereas the folks that often do it, they need to raise that money.

They're not really oversubscribed.

And then sometimes what you'll see too is you might have a really good firm.

They don't have their flagship product that's oversubscribed on the platform.

They have the new thing.

that they're starting.

Whether it's a new sector-focused fund or geography, it's the upstart thing that they need to launch.