Private markets convergence is reshaping how advisors build portfolios

The way financial advisors approach portfolio construction is shifting fundamentally.

Speaking with WP, Brad Walker, Partner and Co-President at alternative investment platform CAIS, says the industry has moved from a period of simply gaining exposure to private markets into a full integration of public and private investments into a single, unified approach.

"Over the last few years, advisors were in what we call the 'Era of Access,'" Walker said. "They were gaining exposure to private markets, capital markets and building more diversified portfolios. But access was just the first step. We've now entered the 'Era of Convergence,' where advisors are no longer thinking about public and private markets as separate allocations."

That shift is already visible in how advisors operate day to day. Rather than treating alternatives as a bolt-on, advisors are looking to manage public and private market allocations through a single platform - researching investments, executing transactions and monitoring portfolios within one continuous workflow.

"Technology is what makes this convergence possible," Walker said. "A fully connected, technology-enabled platform has become essential for advisors looking to manage public and private market exposures efficiently and at scale."

From paperwork to platform

Just a few years ago, gaining access to private markets required advisors to navigate fragmented data, labor-intensive due diligence processes and considerable paperwork even before a single dollar was invested.

"Even for experienced advisors, researching managers, evaluating strategies and completing subscriptions demanded considerable time and resources, creating a meaningful barrier to adoption,” Walker said.

Wealthtech and artificial intelligence have changed that equation and advisors using platforms such as CAIS can now access educational resources, compare managers, execute investments and monitor portfolios through a unified platform.

"Technology isn't replacing advisor judgment. Instead, it's reducing administrative work so advisors can spend more time making investment decisions, serving clients and delivering personalized advice,” Walker said.

A marketplace expanding to meet demand

CAIS announced this week that nearly 40 new and existing alternative asset managers have introduced strategies on the platform over the past six months, adding options across hedge funds, infrastructure, real estate, private equity and tax-advantaged strategies.

New additions include strategies from Apollo, AQR, Blackstone, Coatue, Goldman Sachs Asset Management, KKR, Lord Abbett, Morgan Stanley Investment Management and dozens of other institutional and specialized managers not typically available through traditional wealth channels.

The timing reflects where advisor interest is concentrated. In the first quarter of 2026, CAIS recorded increased flows into exchange funds, hedge funds, infrastructure, real estate and tax-advantaged strategies.

It’s a pattern Walker describes as a deliberate shift toward diversification and income-oriented investing rather than a reach for risk.

"Advisor needs continue to evolve, and we're committed to building a marketplace that evolves with them," Walker said. "By thoughtfully expanding access to leading managers and strategies, paired with robust education and technology that removes operational friction, we're allowing advisors to construct portfolios that reflect today's market environment and their clients' long-term objectives."

AI in wealth management

As the wealth management industry debates the role of AI, Walker sees it not as a threat to advisor relationships but as a lever for improving them.

 Over the next five years, he believes AI's greatest impact will be in helping advisors synthesize information faster and identify patterns across increasingly complex datasets.

"Rather than spending hours gathering and comparing information, advisors will be able to evaluate opportunities across public and private markets, identify risks and spend more time applying judgment and having meaningful conversations with clients," he said.

At CAIS, that vision is already being operationalized. The firm's AI-powered assistant, CAISey, helps advisors surface, evaluate and compare alternative funds in minutes. A recent integration with Anthropic brings CAIS capabilities directly into advisors' existing workflows.

"AI isn't just streamlining operations," Walker said. "It's revolutionizing the entire investing process to support advisors and their end-clients."

In today's macro environment, Walker says advisor behavior on the CAIS platform reflects a clear preference for resilience. Momentum is building in hedge funds, infrastructure and real estate, alongside continued flows into structured investments, with private equity maintaining the highest overall demand.

"Rather than reaching for risk, advisors are taking a disciplined approach to portfolio construction as they navigate continued macro uncertainty," Walker said. "Advisors are actively adjusting allocations across both public and private markets with a more dynamic mindset than we've seen in previous market cycles, signaling an evolution in how they build portfolios."

With expanded access, however, comes expanded responsibility. Walker is clear that education and disciplined suitability analysis remain non-negotiable.

"It is critical for advisors to understand the liquidity, tax, and structural considerations of these assets so they can determine whether a particular strategy is appropriate for each client's objectives, liquidity needs and risk tolerance,” he said.

What separates firms making progress

Not all advisors are adapting at the same pace. Walker points to four characteristics shared by the firms successfully moving beyond the traditional 60/40 allocation: disciplined frameworks around education, due diligence, portfolio construction and technology.

The common thread is treating alternatives as embedded in the investment process, not as one-off opportunities.

"Firms that are moving beyond the traditional 60/40 are having more holistic conversations with clients about their long-term objectives," he said. "Rather than viewing alternatives as a standalone allocation, they're considering how public markets, private markets, and capital markets solutions work together to build more resilient, diversified portfolios tailored to each client's goals."

Looking out a decade, Walker sees one overarching structural force: companies are staying private longer, meaning a growing portion of economic activity and investment opportunity exists outside of public markets.

Advisors who rely solely on public markets risk missing meaningful parts of the return landscape.

"The firms that combine these capabilities with trusted advice will be best positioned for the next generation of wealth management," Walker said. "To prepare for that shift, advisors should continue investing in the technology, education and investment frameworks needed to confidently evaluate, implement and monitor private markets allocations."