Wealth Managers Expect Alts Interest to Accelerate

Wealth managers expect client interest in alternative investments to keep growing, according to a new survey from Brookfield Asset Management Ltd.

The firm found that 73% of those surveyed said client discussions had shifted from defining alternative assets to figuring out which ones fit portfolio goals. More than three-quarters (76%) of respondents predicted that interest in these assets would accelerate.

Advisers and Clients See Rising Role for Private Assets

Brookfield’s study also reported that 69% of wealth managers who used alternatives believed the asset class should be at the core of portfolio strategy for high-net-worth investors.

Another 80% said expertise in alternatives was a “must-have” among advisers. The findings come as the firm announced last month its private markets offering for defined contribution retirement plans.

Separate research from BlackRock Inc. reinforced the trend. The 2026 BlackRock Read on Retirement survey showed that nearly three-quarters of 401(k) and 403(b) plan participants want to invest in private markets within their retirement plan. Among plan sponsors surveyed by BlackRock, 45% said they had considered adding private market exposures, up 21 percentage points from the prior year. The most common reason sponsors gave was improving participant outcomes.

Analytics firm Escalent’s Cogent Syndicated study found that adviser use of alternatives is rising too. Currently, 68% of responding advisers reported using alternatives, and another 14% expect to start within two years. Among those currently using these assets, 21% described themselves as “heavy users” — meaning at least 10% of assets under management — but 40% expected to reach that level in two years. Respondents’ average allocation stood at 7.7%, with an expected rise to 10.7%.

Education appears to be a key driver.

Brookfield found that about two-thirds (67%) of wealth managers said education helped them increase use of alternative investments. A similar share (71%) said client concerns were easily addressed through education, and 61% reported that clients were more willing to try less-familiar products with clear guidance.

Despite progress, the surveys reveal gaps in communication. Brookfield reported that 69% of surveyed advisers said clients invested in alternatives because of their recommendations — but only 36% of investors agreed. Also, 58% of advisers worried their clients did not understand alternatives, while only 39% of investors reported a lack of understanding.

Escalent’s study pointed out that advisers often take the lead on the discussion. Among all respondents, 40% said they initiated the conversation about alternatives, and that number rose to 55% among heavy users. Clients initiated discussions only 18% of the time, and just 14% when it came to retirement accounts. In nearly one-third of conversations, advisers said they addressed client “misperceptions about particular investments.”

Barriers and the Road Ahead

Not all advisers are on board. Escalent found that 32% of advisers did not use alternative investments, though only 18% expected to remain non-users in two years. The most common objections included alternatives not being suitable for clients (39%), lack of familiarity (23%), no interest (20%), and previous negative results (18%).