The State of Alternative Investments in Wealth Management 2025
Nine in ten financial advisors (92%) currently incorporate alternative investments in client portfolios, with 91% planning to increase allocations over the next two years, according to the third annual independent survey conducted by CAIS and Mercer.
The third annual survey uncovers insights from over 500 financial advisors exploring key themes including current allocations across key alternative asset classes and expected adjustments over the next few years.
This year's report also explores the technology and resources advisors use when allocating to alternative investments, as well as the private market themes they plan to introduce into their client portfolios.
Key findings include:
- Momentum Building for Certain Asset Classes: Private debt (89%), PE (86%), and real estate (85%) remain the top asset classes advisors are currently allocated to and more than half expect to increase allocations to infrastructure, compared to 32% in 2023.
- Model Portfolios as a Top Resource: Over three-quarters of advisors (77%) are either using or considering model portfolios for alternative investments, with nearly half (47%) relying on them as a primary resource when allocating to alternatives.
- Broad Adoption of Alternatives: Ninety-two percent (92%) of surveyed advisors already allocate to alternatives, with 91% planning to increase their alts allocations in the next two years.
"The findings underscore the importance of equipping advisors with the same high-quality resources and due diligence capabilities that institutions have benefitted from."
US Financial Intermediaries Leader, Mercer
How Access to Alternative Investments Potentially Helps Advisors’ Businesses
The survey highlighted that in addition to helping clients meet their goals and objectives (75%), more advisors (86%) again said alts access helps them differentiate their practice from their peers. A majority also claimed that access to alternatives helps them win new clients (63%) and/or gain wallet share with existing clients (53%).
Discover key insights into financial advisor's alternative asset class allocations and more by downloading the full report.
