Educational Alpha - S3: Conversation with Matt Curtolo, LP/GP Advisor
Host: Bill Kelly (CAIA Association)
Guest: Matt Curtolo (LP/GP Advisor; ex-Hamilton Lane, MetLife, Allocate)
Release Date: October 15, 2025

Episode Overview

This episode delves into the changing landscape of private markets, with a particular focus on the evolving relationship between Limited Partners (LPs) and General Partners (GPs). Host Bill Kelly interviews Matt Curtolo, who draws upon his extensive experience across investment consulting, institutional asset management, and fintech-enabled democratization of venture capital. Key themes include the secondary market’s evolution, transparency dynamics between LPs and GPs, “manufactured liquidity,” and both the promise and the challenges of expanding access to private alternatives.

Key Discussion Points & Insights

1. Matt Curtolo’s Professional Journey (02:49–08:10)

• Early Years at Hamilton Lane:
  • Joined at a startup phase (2004), gaining experience in a “room I had no business being in,” providing broad exposure to private markets' evolution.
  • Became part of the secondary investment team during the 2008 financial crisis, witnessing firsthand the transformation from distressed asset sales to mature market mechanisms.
• Investment Policy at Hurdle Callahan
  • Managed a broad portfolio for small institutions and families, running private equity and sitting on investment strategy committees.
  • Developed educational efforts to introduce private equity to clients, covering everything from the basics to advanced due diligence.
• Institutional Allocation Experience at MetLife
  • Managed large general account allocations, including launching co-investment and emerging manager programs.
  • Experienced “being one of those very large checks in the room,” influencing LPACs.
• Entrepreneurial Move to Allocate
  • Joined as co-leader of investments at a VC-focused fintech, enabling democratized access to venture capital for individuals.
• Current Consulting Work
  • Advises GPs on network-building and “go-to-market,” and LPs on program construction and governance.

“I always joke I was in rooms that I had no business being in, but it was really fantastic from an educational perspective...”
— Matt Curtolo [03:32]

2. Evolution of the Private Secondaries Market (08:10–15:44)

• 2008 Financial Crisis Impact:
  • Secondaries pre-GFC were “regular way” transactions, mostly trading LP positions.
  • The crisis forced the market into distressed sales, with assets often picked up for “effectively zero” just to remove liabilities.
• Modern Secondaries Are Broader, More Accepted:
  • Market now far deeper, including complex GP-led deals and continuation funds.
  • Used as both a portfolio management tool and a liquidity window for GPs and LPs.
  • Current secondaries volume (~$150B) remains low relative to $15T+ in private capital—“only 1% a year,” signaling room to grow.

“I think then... secondaries were looked at as a bit of a negative contraindicator... Whereas now it's a perfectly acceptable portfolio management tool from the LP side. And the GP-led market... has really been the engine to allow GPs to think about growth, exits, continuing to hold great assets.”
— Matt Curtolo [10:16]

• Illiquidity Premia & Manufactured Liquidity:
  • Debate over whether illiquidity is overemphasized as a benefit.
  • The need for “manufactured liquidity” (NAV-based loans, continuation funds) in response to LP cash needs—especially with increased individual investor participation.

3. Transparency & Tension in LP/GP Relationships (15:44–21:19)

• Steady Progress Toward Transparency:
  • Early days characterized by “as opaque as you can get”—quarterly statements and annual meetings.
  • Technology (e.g., data portals) and LP demands have steadily increased transparency.
  • LPs require more—real-time info, education, coinvestments, and even economic stakes in management companies.

“We've seen more and more transparency... GPs have thought more about other ways to interact with LPs... Now a lot more on demand, a lot more ways that LPs want to think about their relationship, their partnership with GPs.”
— Matt Curtolo [16:54]

• Persistent 'Healthy Tension':
  • “There's always going to be a bigger ask from LPs than GPs are willing to come.”
  • Technology has leveled the playing field somewhat, but “perfect transparency” is elusive.

4. Managing Liquidity Challenges: Manufactured DPI and Continuation Funds (21:19–27:38)

• Liquidity Pressures:
  • The effects of low distributions (negative DPI) on LPs’ ability to re-invest and meet obligations, especially in an environment with sluggish exits.
  • GPs respond with NAV-based loans, continuation funds, and GP-stakes as “manufactured” liquidity solutions.
• Continuation Funds Rise
  • FT data: H1 2025 saw $41B in exits via continuation funds, up 60% YoY.
  • Such vehicles allow LPs to “roll or take liquidity,” addressing both short-term cash needs and long-term value realization.

“If an asset is compounding at a rate higher than what you could get in the public markets... holding a high-quality asset for longer—if it is compounding at a higher rate than alternatives—makes sense.”
— Matt Curtolo [26:25]

5. Democratization of Private Markets: Opportunities and Caveats (27:38–36:02)

• Is Democratization Good?
  • Both Kelly and Curtolo agree emphatically: “Yes, but...” with critical caveats on education and suitability.
• Flawed Net-Worth-Based Restrictions:
  • Current accredited investor rules are “fundamentally flawed”—wealth ≠ sophistication.
  • Strong support for “acumen threshold” as opposed to “wealth requirement” for private market access.
• Role of Advisors & Education:
  • The advisor should be the “line of defense”—akin to doctors or plumbers needing credentials and up-to-date knowledge.
  • Complexity in decumulation (retirement withdrawals) is often underestimated by both investors and professionals.
  • Target-date funds cited as a promising structure for individual alternatives access, but calls for innovation (e.g., an “inverse TDF” for decumulation).

“The idea that because you don't meet a certain wealth threshold, you shouldn't be able to invest in these assets, to me, is just fundamentally flawed, especially when they've been the highest returning asset class...”
— Matt Curtolo [28:54]

6. Venture Capital: Risks, Opportunity, and Portfolio Positioning (36:59–44:36)

• VC as Cornerstone of Innovation:
  • Venture is “the only asset class where you’re building something from nothing,” highlighting innovation’s independence from market cycles.
  • Exposure at Allocate taught Curtolo about the need for thoughtful access to top managers and the high failure rate (50–60% of early-stage investments yielding little or nothing).
  • The “upside tail”—gigantic winners like SpaceX or OpenAI—can drive strong outcomes even with high loss rates.
  • Advocates broad portfolio exposure over “company-picking” for individuals.

“If you don’t get excited by that—the opportunities across all the vectors you mentioned... this is the only asset class where you’re building something from nothing.”
— Matt Curtolo [39:46]

• Shift from Public to Private, Need for Access:
  • IPO timelines have stretched, closing individuals out of early-stage gains.
  • Curtolo: True democratization needs access, but with caution—single-company bets carry high principal risk.

“Being a company picker, being a stock picker is hard in the public markets. Being a fund investor in the private markets has just as much dispersion. So... invest with caution.”
— Matt Curtolo [43:38]

Notable Quotes & Memorable Moments

“I always joke I was in rooms that I had no business being in, but it was really fantastic from an educational perspective...”
— Matt Curtolo [03:32]

“Secondaries were looked at as a bit of a negative contraindicator... Now it's a perfectly acceptable portfolio management tool from the LP side.”
— Matt Curtolo [10:16]

“If an asset is compounding at a rate higher than what you could get in the public markets... holding a high-quality asset for longer... makes sense.”
— Matt Curtolo [26:25]

“The idea that because you don't meet a certain wealth threshold, you shouldn't be able to invest in these assets, to me, is just fundamentally flawed.”
— Matt Curtolo [28:54]

“If you don’t get excited by that—the opportunities across all the vectors you mentioned... this is the only asset class where you’re building something from nothing.”
— Matt Curtolo [39:46]

Key Timestamps

• 02:49 – Matt Curtolo’s career arc and early experiences
• 08:10 – Secondary market evolution (pre- and post-GFC)
• 12:45 – Thinness of current secondary market and future potential
• 16:18 – Changes in LP/GP transparency and expectations
• 21:19 – Manufactured liquidity, GP behaviors under fundraising stress
• 25:16 – Continuation funds, permanence, and holding periods
• 27:38 – Democratization: LP landscape shifts, access beyond institutions
• 30:38 – Advisor’s role, investor education, and retirement decumulation challenges
• 38:27 – Venture capital: risks, portfolio context, innovation, and individual access
• 43:38 – Company-picking risk, prudent portfolio exposure in private markets

Tone & Language

The episode maintains an open, exploratory, and practical tone. Both host and guest emphasize transparency, industry professionalism, and prudent innovation, speaking candidly about industry frictions, regulatory shortcomings, and the need for better education as private markets open to a wider investor base.

Summary prepared for listeners who want the substance of the conversation, major themes, and actionable insights from Matt Curtolo’s experience in private markets.