$600 billion wealth platform executive Christina Kopec Rooney said RIAs are increasingly operating like institutions, with centralized decision-making, CIO-led frameworks and broader use of model portfolios.
Consolidation, generational wealth transfer and rising client demands are driving that shift, while advisors are adding alternatives—from liquid extension strategies to private equity and private credit—to improve diversification and portfolio-wide risk efficiency.
Leading firms are separating portfolio design from implementation, using scalable models and then customizing for taxes, liquidity and client goals to deliver personalization without losing operational discipline.
Private markets are moving further into mainstream wealth portfolios as companies stay private longer and private credit supplements bank lending, though Rooney said liquidity, suitability, investor education and manager due diligence remain critical.
Rooney said RIAs increasingly want fewer, deeper asset-manager relationships that provide portfolio construction, education and implementation support, a trend Wellington is pursuing through its Hartford Funds deal and partnerships with Vanguard and Blackstone.
What hidden risks do clients face as private equity reshapes financial advice into a scalable, M&A-driven enterprise?
Can personalized financial advice survive as wealth management adopts institutional scale and AI-driven models?
As public and private markets merge, how must investors redefine portfolio risk beyond the traditional 60/40 model?
The $600 Billion Migration: RIAs, Private Credit, and the New Era of Private Markets
Overview
The financial landscape is undergoing a profound transformation, with capital and activity shifting significantly toward private markets. This change is driven by the contraction of public markets, as seen in the sharp decline in the number of U.S. publicly traded companies and the shrinking Wilshire 5000 index. At the same time, there is a surge in mergers and acquisitions within the wealth management sector and rapid growth in the private credit market. Together, these trends highlight a broader market contraction and a fundamental change in how companies access capital and grow, marking a new era for investors and financial professionals.