The way financial advisors construct portfolios is undergoing a structural shift, according to Brad Walker, partner and co-president at CAIS, an alternative investment platform. Speaking with InvestmentNews, Walker described the industry's transition from what he calls the 'Era of Access'—where advisors simply gained exposure to private markets—to an 'Era of Convergence,' where public and private investments are managed as a single, unified allocation.
'Over the last few years, advisors were gaining exposure to private markets and building more diversified portfolios,' Walker said. 'But access was just the first step. We've now entered the Era of Convergence, where advisors are no longer thinking about public and private markets as separate allocations.' This shift is evident in daily operations, with advisors using integrated platforms to research, execute, and monitor both public and private investments in one continuous workflow.
Technology as the enabler
Walker emphasized that technology is the linchpin of this convergence. 'A fully connected, technology-enabled platform has become essential for advisors looking to manage public and private market exposures efficiently and at scale,' he said. Just a few years ago, private market access required navigating fragmented data, labor-intensive due diligence, and extensive paperwork. Now, platforms like CAIS offer educational resources, manager comparisons, execution, and portfolio monitoring in a single interface.
'Technology isn't replacing advisor judgment,' Walker noted. 'Instead, it's reducing administrative work so advisors can spend more time making investment decisions, serving clients, and delivering personalized advice.' This aligns with broader industry trends, as seen in advisors' growing focus on portfolio design and liquidity budgets.
Marketplace expansion
CAIS announced this week that nearly 40 new and existing alternative asset managers have introduced strategies on its platform over the past six months. New additions include offerings from Apollo, AQR, Blackstone, Coatue, Goldman Sachs Asset Management, KKR, Lord Abbett, Morgan Stanley Investment Management, and dozens of other institutional managers. These strategies span hedge funds, infrastructure, real estate, private equity, and tax-advantaged vehicles.
The timing reflects advisor demand. In the first quarter of 2026, CAIS recorded increased flows into exchange funds, hedge funds, infrastructure, real estate, and tax-advantaged strategies. Walker described this as a deliberate shift toward diversification and income-oriented investing, rather than a reach for risk. 'Advisor needs continue to evolve, and we're committed to building a marketplace that evolves with them,' he said.
AI in wealth management
As the industry debates AI's role, Walker sees it as a tool to enhance advisor-client relationships. Over the next five years, he believes AI's greatest impact will be in helping advisors synthesize information faster and identify patterns across complex datasets. 'Rather than spending hours gathering and comparing information, advisors will be able to evaluate opportunities across public and private markets, identify risks, and spend more time applying judgment and having meaningful conversations with clients,' he said.
CAIS is operationalizing this vision with CAISey, an AI-powered assistant that helps advisors surface, evaluate, and compare alternative funds in minutes. A recent integration with Anthropic brings CAIS capabilities directly into advisors' existing workflows. 'AI isn't just streamlining operations,' Walker said. 'It's revolutionizing the entire investing process to support advisors and their end-clients.' This comes amid rising concerns about AI-powered security threats, but Walker emphasizes the benefits.
Advisor behavior and discipline
In today's macro environment, Walker says advisor behavior on the CAIS platform reflects a clear preference for resilience. Momentum is building in hedge funds, infrastructure, and real estate, alongside continued flows into structured investments, with private equity maintaining the highest overall demand. 'Rather than reaching for risk, advisors are taking a disciplined approach to portfolio construction as they navigate continued macro uncertainty,' he said.
Walker also stressed that expanded access brings expanded responsibility. 'It is critical for advisors to understand the liquidity, tax, and structural considerations of these assets so they can determine whether a particular strategy is appropriate for each client's objectives, liquidity needs, and risk tolerance,' he said. This echoes broader industry discussions, such as rising defaults in private credit, underscoring the need for due diligence.
Walker identified four characteristics shared by firms successfully moving beyond the traditional 60/40 allocation: disciplined frameworks around education, due diligence, portfolio construction, and technology. The common thread is treating alternatives not as a bolt-on but as an integral part of portfolio design. As the industry evolves, advisors who embrace this convergence—and the tools that enable it—will be better positioned to meet client needs in an increasingly complex market.
