Why Private Wealth is Still Under-Allocated in Private Markets (and What Changes That) - Chris Schelling - Managing Director - Aksia

In this episode of The Distribution, Brandon Sedloff sits down with Chris Schelling for a deep dive into the evolving intersection of private markets, alternatives, and private wealth. Chris shares his unconventional path into investing, from studying psychology to becoming a longtime allocator and advisor across institutional and wealth channels. The conversation explores how private markets have matured, why education remains a critical gap in the wealth space, and what it really takes to allocate capital effectively in opaque and complex markets. Drawing on decades of experience meeting thousands of managers, Chris offers a clear-eyed perspective on risk, return dispersion, and the structural shifts reshaping private capital. They discuss: How psychology, behavior, and incentives shape decision-making in private markets The growing role of private wealth in alternatives and why institutional playbooks still matter Risks like adverse selection, return dispersion, and misaligned incentives in private investments Interval funds and why they can be effective tools for accessing private markets at scale Chris’s outlook on private equity, private credit, hedge funds, venture, and real assets over the next two years Links: Aksia - https://www.aksia.com/ Chris on LinkedIn - https://www.linkedin.com/in/christopher-schelling/ Brandon on LinkedIn - https://www.linkedin.com/in/bsedloff/ Juniper Square - https://www.junipersquare.com/ Topics: (00:00:00) - Intro (00:03:12) - Chris’ background and career (00:05:33) - The intersection of psychology and finance (00:07:30) - Understanding capital markets and alternatives (00:16:49) - The role of private markets in portfolios (00:31:15) - Understanding interval funds (00:32:36) - Managing risks and liquidity (00:34:01) - Challenges and strategies in fund management (00:35:25) - The importance of education in wealth management (00:37:33) - Adapting to market trends and client needs (00:39:55) - The role of large asset managers (00:43:43) - Private markets and wealth management (00:49:11) - Evaluating general partners (GPs) (00:52:35) - Current trends in alternative investments (01:00:23) - Conclusion and contact information