Key considerations for your allocation 

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What should you consider when making an allocation to alternative investments?

Alternative investments have proven to be an effective tool to achieve diversification amidst the highly volatile markets of the past few years. However, more could be done to demystify private markets investments. According to our recent survey of defined benefit (DB) plan sponsors, one in five plan sponsors don’t invest in private markets because “it’s too complex.”

This means that many institutional investors could be missing out on the benefits that alternative investments can offer. Aside from portfolio diversification, alternatives offer great downside protection, and certain asset classes are a valuable defense against inflation. 

At Mercer, our team of alternative investments specialists can help create an alternative investment strategy that fits your organization’s investment objectives. We have significant knowledge, deep expertise, and global scale and resources – available to help you access all types of alternative investments, tailored to your needs.

Watch this video to see key considerations that should be addressed when making an allocation to alternative investments.

Whether you're considering alternative investments for the first time or have an established investment portfolio, our flexible approach can help you achieve your goals. Contact a Mercer consultant today to get started.

Our alternative investments approach can flex to suit you

  • Client-centric flexible approach

    Our work begins with the knowledge that no two clients are the same. Whether it’s cash-flow, targeted returns or familiarity with private markets, each organization has its own unique requirements. We know that pension providers, endowment funds, insurance companies and wealth management firms will all have different approaches and needs. Our flexible services allow us to meet these requirements.
  • Extensive research platform

    We construct flexible private markets solutions across all asset classes. These are designed to help meet each client’s particular needs, objectives and appetite for risk. We offer a range of services, from liquidity budgeting and strategy design to in-depth operational due diligence and standardized reporting. Our dedicated, experienced teams streamline even the most complex of processes to make our clients’ lives easier.
  • Global reach, local resources

    Our fund selection process is rigorous. Mercer typically reviews more than 2,000 fund offerings each year. Following this global review process, we perform due diligence, assign ratings and make recommendations for investments. These are based on each client’s unique portfolio objectives, cash-flow requirements and risk tolerance.

Our experience in alternative investments*


US$164 billion in global alternatives assets under advisement


US$26 billion in global alternatives under management


240 alternatives professionals


30 years' experience in private markets


27 offices globally

* June 30, 2022

Alternative investment strategies

The alternatives strategy you choose will depend on a range of factors, including your specific objectives, risk tolerance and liquidity requirements. We can help you explore all the available options and customize a strategy that works for you.
  • Co-investments

    Co-investments have the potential to deliver greater diversification, lower fees and higher net returns and, provide a more tailored exposure set.
  • Impact investing

    Impact investments have the potential to help you find an optimal balance between making a positive change and delivering better returns.
  • Infrastructure

    Infrastructure investments have the potential to deliver greater diversification, inflation protection and longer-term sustainability.
  • Private debt and credit

    Private debt strategies have the potential to deliver a higher-yield than listed bonds and retain the potential for capital growth.
  • Private equity

    Private equity strategies leverage opportunities from the vast number of companies listed under private ownership.
  • Real-estate

    Investing in real-estate is linked to important sectors of the real economy, including long-term trends such as population shifts.
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