Podcast Summary: How I Invest with David Weisburd – E225: Inside the $324B Playbook: How Hightower Is Reshaping Wealth Management

Date: October 13, 2025
Guests: David Weisburd (Host), Robert Picard (Head of Alternatives, Hightower Advisors)

Episode Overview

This episode dives deep into the evolution of wealth management, focusing on how Hightower Advisors—a $320B+ platform overseeing 100+ firms nationwide—is driving change. David Weisburd and guest Robert Picard explore Hightower’s acquisition of NEPC, the democratization of private markets, innovation in portfolio construction for wealthy individuals versus institutions, the growing utility of illiquidity, technology’s disruptive force (especially AI), and the ongoing transformation of the wealth management and private investing landscape.

Key Discussion Points & Insights

1. The Democratization and Miniaturization of Private Markets

• Accessibility Shift:
  • Historically, private equity and growth investments required checks of $25M+. Thanks to regulatory, product, and technology advances, minimums now start as low as $10,000.
  • “Huge evolution or change in technology…now enable what I refer to as the democratization and miniaturization of private markets.” — Robert (00:26)
• Current Market:
  • Of all US companies generating $100M+ revenue, 91% remain private, creating vast opportunities previously closed to individuals.
  • “Only 9% are public…that’s crazy numbers.” — Robert (00:00, 05:55)

2. Strategic Acquisition: Integrating NEPC

• Why Acquire NEPC?:
  • Hightower wanted to deepen its research and model portfolio offering, gaining institutional-grade expertise for high net worth clients.
  • “We can not only bring value added services in the form of research, but also…model portfolios across public and private markets." — Robert (01:40)
• Application:
  • Bringing institutional research and portfolio construction to family offices and individuals, adapting historically exclusive endowment best practices.

3. Comparing Institutional vs. High Net Worth Portfolios

• Key Differences:
  • Institutions have longer time horizons and higher private market allocations.
  • “Average university endowment has more than 50% allocated to private markets…average individual investor…less than 5%.” — Robert (03:51)
• Bridging the Gap:
  • Hightower aims to educate clients and offer accessible vehicles to close the privates allocation gap.

4. Recommended Private Asset Allocations

• Tailoring to Client Needs:
  • No one-size-fits-all: factors include age, liquidity needs, generational goals.
  • Model Allocations (Sample Profiles):
    • Conservative: ~10% privates (20% PE/VC, 80% RE & credit)
    • Balanced: ~20% privates (50% PE/VC, 50% RE & credit)
    • Growth: ~30% privates (60% PE/VC, 40% RE & credit)
  • “We really look at it as conservative, balanced, and growth…generates better risk adjusted returns with all of those allocations compared to a traditional 60/40.” — Robert (09:16–13:24)

5. The Virtue of Illiquidity

• Behavioral Benefits:
  • Illiquidity functions as a safeguard, reducing panic-driven selling during downturns.
  • “Illiquidity can be your friend in market downturns…” — Robert (13:58)
  • Personal anecdote of clients (and his own father) regretting panic sells.
• Client Education:
  • Key is ensuring clients understand and feel comfortable with portfolio illiquidity.

6. Lessons from Institutional Playbooks

• Being Prepared for Downturns:
  • Citing CalSTRS’ “war games”—a deliberate plan for 20%+ market drops.
  • “Number one thing you could do in a market downturn is cancel your IC…” — David (17:34)
• Swiss Approach:
  • Robert: Emphasizes process-driven, scenario planning similar to his background in the Swiss military.

7. Technological Disruption & The Future of Asset Management

• Impact of AI:
  • AI already capable of assembling investment research and memos for private funds; the research analyst role will morph dramatically or be disrupted.
  • “The reality of AI and the reality of the information…is that I will be disrupted.” — Robert (00:55, 23:21)
• Vision for 2030–2035:
  • Robert expects a surge in accessible private markets research and “miniaturized” private investing, with the total market ballooning from ~$13T to $30T–$80T.
  • “That’s going to grow over the next six to eight years to 30 to 35 trillion dollars.” — Robert (26:10)

8. The Rise of Independent and Boutique Wealth Managers

• Competing with Wirehouses:
  • Wirehouses' centralization and regulatory constraints prevent them from investing in niche, smaller, high-alpha funds.
  • Hightower's size and structure permit investment across both mega and boutique alternatives.
  • Family offices and “club” models (e.g., Zuckerberg, Bezos) intensify competition.
  • “Wirehouses…left with a smaller pool of private market managers…excluded from many smaller funds.” — Robert (31:15)
  • “We actually have the best of both worlds…” — Robert (35:51)

9. Mega-Fund Concentration and the Coming Diversification

• Evolution of Retail Alternatives:
  • Today, 95% of “retail” (i.e., $5M+ investor) alternatives money flows to five platforms (Apollo, KKR, etc.), but this will fragment.
  • “That market share over time will go down from 95%…maybe to 50%...and then over time there’s going to be more tools…” — David (41:53)

10. Technology: Then and Now

• From Faxes to AI:
  • Transformation from physical paperwork and limited research to real-time digital, video, and automated intelligence.
  • Example: Moving from sending presentations by FedEx to instant video intros, and leveraging automated document processing and reporting.

11. Personal Lessons & Advice

• Recent Mistake:
  • Picard undersold a transformative tech solution (PMX platform) internally, wishing he had been more assertive (“too gentle”).
  • “My big regret is I should have just basically been much more aggressive.” — Robert (46:48)
• Career Advice:
  • Be curious and humble, maintain your network, and make work fun.
  • “Wisdom grows from really, really humility.” — Robert (50:46)
  • “Have fun, make it fun…figure out a way to make it real…” — Robert (51:20)

Notable Quotes & Moments

• On Change:
  • “The amount of technology, the amount of information we have today…[it’s like] the Jetsons.” — Robert (43:12)
• On the Individual Investor Evolution:
  • “Each client is different because it depends where they are in their…multigenerational wealth, their liquidity, their age demographic.” — Robert (09:16)
• On Asset Manager Disruption:
  • “I want to always be in a situation where a computer can’t do what I’m doing…The reality is that I will be disrupted.” — Robert (23:21)
• On the Infinite Game of Investing:
  • “It’s literally an impossible game to master. And it’s one of the reasons I love playing this game.” — David (29:38)
• On Having Fun and Team Building:
  • “Have fun, make it fun…Whether it be getting tacos, fantasy football... Just figure out a way to make it real.” — Robert (51:20)

Timestamps for Key Segments

• 00:00 — Importance of private markets, democratization theme
• 01:12 — Hightower’s scale and business overview
• 01:40 — NEPC acquisition: rationale and impact
• 03:46 — Portfolio design: HNW vs. institutional
• 09:16 — Recommended private markets allocations for different clients
• 13:35 — The upside of illiquidity in private investing
• 17:34 — Institutional playbooks for downturns
• 23:21 — The future: AI and role of the investment professional
• 26:10 — AI disruption: Building research tools in five minutes
• 31:15 — Independent advisors v. wirehouses & family office trends
• 36:28 — Concentration in mega-funds; retail alternatives market’s future
• 43:12 — 35-year review: What’s changed and stayed the same
• 46:48 — Biggest recent mistake: Internal change management
• 50:46 — Timeless career advice
• 52:21 — Closing thoughts on transformation in wealth management

Takeaways

• Hightower sees its next phase of growth in blending white-glove advisory services with innovative, scalable research and allocation frameworks adapted from leading institutional practices.
• Private market democratization is well underway, with technology and product advances lowering the bar for access like never before.
• True client value comes not just from access, but from education, behavioral guidance (including the value of illiquidity), and personalized solutions.
• Both the advisor’s job and the competitive landscape are changing rapidly—staying curious, humble, networked, and adaptable is paramount.

For high net worth listeners and industry professionals, this episode offers a rare, candid glimpse into the mechanics of how a $300B+ platform is preparing for the future—by investing as much in technology, education, and human relationships as in markets themselves.