Allocator Type
Private Bank
Private Banks serve UHNW clients through advisory and discretionary mandates, often allocating to alternatives via feeders, platforms, or structured products. Managers evaluate private banks through platform dynamics, selection criteria, and distribution mechanics.
Private banks can act as powerful distribution channels, but access depends on platform approval, product fit, and operational readiness. From an allocator standpoint, they balance client suitability, liquidity expectations, and reputational risk.
How allocators define private bank allocation behavior
Segmentation includes:
- Advisory vs discretionary mandate models
- Platform gatekeeping: product committees and approved lists
- Access vehicles: feeders, wrappers, managed accounts
- Liquidity constraints: client expectations and redemption design
- Compliance: suitability and disclosure standards
Allocator framing:
“Can this product be approved and distributed at scale within platform constraints?”
What slows decisions
- Platform committee cycles and documentation requirements
- Fee layering and suitability concerns
- Liquidity mismatch relative to client expectations
- Operational due diligence gaps (reporting, admin, controls)
Key Takeaways
- Private banks are platform-driven allocators
- Approval and suitability mechanics determine outcomes
- Operational readiness is often the gating factor