{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Modern Capital: The Private Markets Podcast","title":"Andrew Tarver: Tens of millions of trades and no one is ready","html":"","width":"100%","height":180,"duration":3522,"description":"Tens of millions of trades are coming to private markets in the near term. \nIn this episode, Andrew Tarver lays out math that should get everyone interested in scaling private markets very focused indeed:\nTarver is one of private markets' most important builders. He's co-founded a unicorn, dozen other companies, ran Capco UK as CEO at 35, and now helps lead private markets strategy across Motive Partners' portfolio - including InvestCloud, which runs $4 trillion in managed accounts.\nHere's the problem:\n\nThe industry is staring down a whole new version of the Paperwork Crisis with even a 7-8% model portfolio shift (it'll likely be higher). \nThat's hundreds of billions in new allocations. And it's not just the initial orders. After a big public markets move, model portfolios automatically rebalance. Markets drop 15%, you're suddenly over-allocated to privates, and the system triggers a wave of redemptions to get back in line. \nEvery quarter, every drift correction, every strat change generates more orders. \nAt $10K-$20K ticket sizes, that's tens of millions of orders. Per year.\nToday's infrastructure handles about 1,000 orders per operational FTE annually. The industry's current NIGO (failed trade) rate sits at 8%.\nDo the math:At current staffing ratios, scaling this requires 48,000 new operational staffAt $200K–$300K per head, someone needs to find $10 billion to pay themAnd that's just one platform — before RIAs, 401(k)s, or fintechs like Robinhood and Revolut enterTarver's analogy is perfect: private markets today are where payments were 15 years ago: paper slips, manual processing, three copies of everything. \nThe industry needs to go from imprinter to tap-to-pay.\nHis answer: digital standards, rules-based infrastructure, and accountability at every node... the same playbook he ran at Goldman, UBS, and Merrill's for two decades.\n\"We are no longer in the Wild West.\"\nThis is the most important infrastructure conversation in private markets right now....","thumbnail_url":"https://img.transistorcdn.com/WtfSQHA--1-XpZlRXLqWOYkNNyL8XBtIdhKD0g1BFfY/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9jOTc2/YmJiYTk4ZjgzY2E2/MmJhZDZlNmIxZGI0/Yjc3NS5wbmc.webp","thumbnail_width":300,"thumbnail_height":300}