In a recent ION Influencers Fireside Chats, host Giovanni Amodeo sits down with Scott Welch, Chief Investment Officer at Certuity, a multi-billion-dollar multifamily office, to explore key trends in private capital allocation. With two decades of experience in private markets, Welch offers deep insight into the evolution of investor behavior, liquidity strategies, and the rising prominence of continuation vehicles.

Key Topics Discussed

1. Evolution of Private Capital Allocation

• Early adoption focused heavily on hedge funds for diversification.

• Post-2008 crisis, investors shifted towards liquid alternatives wrapped in mutual fund structures.

• Growing familiarity and comfort with private equity and private market strategies among affluent investors.

2. Inflection Points in Investor Behavior

• The 2008 financial crisis exposed liquidity risks in hedge funds, leading to increased caution.

• Mutual fund-style alternatives gained traction, offering better transparency and daily liquidity.

• Recent growth in private capital interest is driven by the search for yield and long-term performance.

3. Challenges and Planning in Private Markets

• Navigating J-curves and extended timelines in private equity distributions is key.

• Welch emphasizes the importance of scenario planning around delayed liquidity and longer holding periods.

• Strategic allocations increasingly factor in secondary markets to manage liquidity and reinvestment cycles.

4. The Rise of the Secondary Market

• Rapid expansion of the secondary market driven by investor demand for liquidity and managers’ need to fund new vehicles.

• Certuity sees this space as a valuable opportunity for both yield and diversification.

5. Continuation Vehicles: Risks and Opportunities

• Welch sees continuation vehicles as a healthy evolution when used appropriately.

• Key criteria: Sponsor retention of stake and management continuity—both signal confidence and alignment.

• When structured well, continuation vehicles can extend value creation and maintain investor confidence.

Key takeaways

• Private capital allocation trends show increased demand for customized, long-term investment strategies.

• Continuation vehicles and secondary markets are emerging as powerful tools for liquidity and capital recycling.

• Investors must plan for liquidity risk and timeline uncertainty in private equity markets.

• The next evolution in private investing includes multi-fund evergreen solutions for simplified access and broader exposure.

Key timestamps:

00:07 Introduction to the Fireside Chats
01:16 Shifts in Private Capital Allocation
03:05 Emergence of Private Markets
05:51 Innovation in Investment Strategies
07:28 Market Bifurcation in Private Equity
09:28 Assessing New Fund Managers
12:54 Niche Strategies in Private Credit
14:07 Trends in Professional Sports Investment
16:58 Valuation and Pricing Strategies
18:46 The Importance of Access in Investment
20:31 Understanding Client Needs in Wealth Management
21:50 Trends in Asset Management
23:48 Scenario Planning for Private Equity
25:00 Exploring Continuation Vehicles in Secondaries Market