Private Capital Goes Retail: How RIAs Are Reshaping Access

In Brief:

Brett Hillard, Chief Investment Officer at GLASfunds, joined S&P Global's Private Markets 360° podcast to discuss how registered investment advisors (RIAs) can effectively integrate private market investments into client portfolios. With over 15 years of industry experience, Hillard explains how GLASfunds' innovative platform helps wealth managers overcome administrative complexities by providing streamlined access to private market opportunities. He shares insights on fund selection, manager evaluation, and emerging trends in the democratization of alternative investments for high-net-worth individuals.

Big Picture Drivers:

• Accessibility: GLASfunds enables smaller investment tickets ($1M vs typical $30M minimum) into private markets

• Efficiency: Platform reduces administrative burden for advisors managing thousands of client portfolios

• Aggregation: Unique legal structure allows faster deployment without creating new feeder funds per opportunity

• Democratization: Growing trend of making institutional-quality alternatives available to broader investor base

Key Insights:

• Specialized Focus: GLASfunds typically favors smaller, specialized managers who demonstrate deep expertise in specific verticals, often outperforming larger generalists through superior market knowledge and relationship networks

• Value Integration: Vertically integrated operators, particularly in real estate sectors like workforce housing, deliver enhanced returns by eliminating middlemen in construction, sourcing, and property management

• Structural Innovation: Their proprietary legal architecture allows aggregation with as little as $1M, avoiding costly startup expenses of traditional feeder funds while maintaining legal separation of assets

• Demand-Supply Dynamics: Despite significant construction activity, data centers represent compelling opportunities due to overwhelming demand that continues to outpace supply growth

• Market Evolution: Private markets are evolving toward a barbell approach, with mainstream strategies moving to evergreen structures while specialized opportunities remain in traditional drawdown formats

• Co-Investment Growth: Ultra-high-net-worth demand for direct access to individual deals is accelerating, mirroring the institutional evolution toward co-investments

• Secondary Market Development: A dedicated secondary market for private wealth investors is emerging, adapting institutional liquidity solutions for smaller ticket sizes

By The Numbers:

• $100,000: Minimum ticket size some GLASfunds clients can access compared to traditional higher minimums

• 200-500 basis points: Enhanced annual returns possible through anchor investments in new evergreen funds

• 150 advisor firms: GLASfunds' current client base providing diverse deal flow and investment ideas

• 50% discount: Some vertically integrated real estate managers achieve by buying materials directly from factories

Memorable Quotes:

• "The bar is very high for us to underwrite and recommend a draw-down fund structure within a large cap, middle market direct lending strategy." - Brett Hillard, explaining their preference for evergreen structures in more liquid private market segments

• "Wealth managers don't want to dedicate too many resources to the administration of their investments because that's not really their competitive advantage." - Brett Hillard, highlighting why RIAs seek streamlined operational solutions for alternative investments

• "We can aggregate for as little as a million dollars where if you're spinning up a feeder fund [you] probably need at least 30 million to spread out the startup costs." - Brett Hillard, describing GLASfunds' key structural advantage

• "We think investors will be able to achieve more differentiated [returns] in smaller medium-sized managers that are focused on very specific areas of the market." - Brett Hillard, sharing his perspective on where the most compelling opportunities exist

• "The demand for co-investment is going to rise and I also think a dedicated second market catered to the wealth management channel is going to develop." - Brett Hillard, forecasting the evolution of private market access for high-net-worth investors

The Wrap: 

As private markets become increasingly accessible to high-net-worth investors, platforms like GLASfunds are creating infrastructure that mirrors the institutional evolution from fund-of-funds to direct investments. This democratization will likely accelerate as evergreen structures grow in popularity for certain strategies, while specialized opportunities and co-investments will continue requiring dedicated vehicles. The wealth management industry appears poised for significant transformation as private market allocation becomes a competitive necessity rather than a luxury offering.