What happens when private markets go from thousands of trades… to millions?
With even a 7-8% model portfolio shift to privates, the industry is looking at hundreds of billions in new allocations. At $10K-$20K ticket sizes, that's tens of millions of orders. Per year.
Inside The Episode
Andrew Tarver laid out the math (and lots more!) on a new episode of my podcast: Modern Capital.
With even a 7-8% model portfolio shift to privates, the industry is looking at hundreds of billions in new allocations. At $10K-$20K ticket sizes, that's tens of millions of orders. Per year.
And it compounds. After a big public markets move, models rebalance automatically. Every quarter, every drift correction generates more orders.
Today's infrastructure handles 1,000 orders per FTE annually. The NIGO rate is 8%. Scaling requires 48,000 new ops staff and $10 billion to pay them. One platform.
This is a new Paperwork Crisis, staring us down.