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

Jan 13, 2026

Chris Schelling, Managing Director at Aksia, dives into the complex world of private markets and alternatives. He shares his unique journey from studying psychology to becoming a key allocator. The discussion highlights the importance of education in private wealth, addressing risks like adverse selection and return dispersion, and the potential of interval funds for accessing private markets. Chris also offers insights on the future of various asset classes, urging advisors to understand complexities and align with the realities of the wealth landscape.

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ANECDOTE

4,000 Manager Meetings Shaped His View

Chris described meeting roughly 4,000 managers over many years to learn sourcing and diligence.
He used that volume to absorb practices and improve LP decision-making.

INSIGHT

Massive Wealth Pool, Tiny Private Markets Share

The wealth channel is bigger and growing faster than institutions, yet average private markets allocations there remain under 1%.
That gap means large potential capital flows into alternatives if advisors learn to implement them properly.

INSIGHT

High Dispersion Means Higher Stakes

Private markets show much greater return dispersion, so picking the right funds matters more than in public markets.
That makes avoiding adverse selection and accessing broad information advantages critical for success.

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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