Making Billions: The Private Equity Podcast for Fund Managers, Alternative Asset Managers, and Venture Capital Investors · Ryan Miller

Ditch Your Stocks: The New Wealth Strategy Wall Street Won’t Tell You

·33 min·5 clips

Ryan Miller brings on Tony Davidoff, a senior alternatives investment strategist at the Franklin Templeton Institute. Tony leads institutional research and thought leadership on private markets, portfolio construction, and goals-based investing, and he hosts the Alternative Allocations podcast. He also works with advisors and institutions to translate complex strategies into practical frameworks. The conversation opens with a direct shot at the old 60/40 mindset. Ryan asks what is broken about traditional portfolios. Tony points to the different way private markets work and the way investors keep expecting them to behave like public ones. That mismatch creates confusion around return, risk, and time horizon. Illiquidity is the main issue. Tony says it should be treated as a feature, not a defect. If investors want the long-term illiquidity premium private equity can offer, they have to give a manager time to earn it. He puts that premium at roughly 300 to 500 basis points over public equity. The usual holding period is seven to 10 years, and sometimes longer. From there he explains why private companies can benefit from staying private longer. They can focus on execution instead of quarter-by-quarter pressure from shareholders. SpaceX is the clearest example in the episode. Ryan and Tony use it to show how a complex strategy can be easier to run away from public scrutiny. The discussion keeps coming back to capital access, trust, and alignment. The close points listeners toward performance in alternatives and working with RIAs so deals can reach professional portfolio managers.

As heard by us

A clear case for why illiquidity can be the price of long-term private-market upside.

Tony Davidoff and Ryan Miller spend the episode working through the fault lines under the 60-40 mindset and make a solid case for why private markets still belong in portfolio construction.

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Why you'd press play

You want a plain-English case for why private markets change the portfolio math.

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