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Many advisors turn to alts to differentiate themselves

Allocating to alternative investments may help advisors set themselves apart and win new clients, according to an advisor survey.

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June 21, 2024 | 2 minute read

Advisor views: How alternative investments benefit their practice

Column chart showing advisors views on how allocating to alternative investments may benefit advisors. 83% of surveyed advisors think alts can help differentiate an advisor from their peers. 59% believe allocating to alts can help win new clients while just over half believe they can help gain wallet share from current clients.

Data based on CAIS-Mercer survey, The State of Alternative Investments in Wealth Management, December 2023.

  • According to a CAIS-Mercer survey, private equity, private debt and real estate are among surveyed advisors’ primary focal points during 2024.  
  • Against the backdrop of a historically concentrated equity market in which bonds provide little diversification, advisors have increasingly focused on alternative investments such as these.
  • Incorporating these and other alternative asset classes may help advisors provide enhanced portfolio returns, increased diversification benefits and draw additional income for clients.
  • The survey rightfully focused on alts’ potential benefits to clients—but advisors’ belief that allocating to alts gives them a competitive advantage was also a notable takeaway.
  • In addition to helping clients meet their goals, advisors believe alts can differentiate their practice, help them win new clients and gain wallet share from those they currently serve.
  • Alts have seen increased advisor interest during the past decade for many investment-centric reasons. That they can help diversify clients’ portfolios while also differentiating an advisor’s business may make them a remarkable win-win proposition for many.

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