Nine in 10 financial advisors allocate to alternative investments, and 88% plan to increase allocations over the next two years, according to a recent survey conducted by CAIS and Mercer.
Forty-nine percent of advisors allocate more than 10% of client portfolios to alternatives, while 74% allocate at least 5%.
The survey results underscore how private market access is being democratized: Eighty percent of advisors who serve non-accredited investors allocate to alternative investments. Respondents cited client education and suitability as their chief priorities to responsibly scale this next phase of adoption.
“This year’s results send a clear message: Advisor demand for alternatives isn’t a passing trend, instead it’s a structural shift,” CAIS president Brad Walker said in a statement. “We’re seeing advisors integrate alternatives as a core part of portfolio construction. As technology and AI continue to streamline access, we expect these allocations to deepen even further.”
The 2025 CAIS Mercer Survey was conducted from Sept. 17 to Oct. 17 among some 800 advisors.
Adjusting to Alts Growth
As demand for alternatives grows, advisors are increasingly focused on optimizing workflows. Seventy-seven percent of respondents said they prefer model portfolios to simplify alternative investing, while 55% consider analysis tools as their most valuable technology feature.
Integrations and digitization followed closely behind, pointing to the increasing role of technology and data-driven insights in advisor practices.
Even with their focus on digitization, survey responses indicate that advisor learning remains human led. Personal interaction, through one-on-one meetings and live events, remains the preferred approach for advisors as they explore opportunities in alternatives.
“Four years of consistent results indicate that advisors have a level of conviction around alternatives that parallels other institutional investors,” Gregg Sommer, Mercer’s leader of U.S. financial intermediaries, said in the statement. “As advisor adoption continues, enhanced due diligence and research tools intended for the advisor community will be crucial in helping meet this demand.”
Eighty-nine percent of advisors reported that their top alternatives allocations are to private equity, 88% to private credit and 86% to real estate. Interest in thematic areas has also gained momentum: 70% in artificial intelligence, 58% in tax-advantaged strategies and 36% in energy transition-related investments.
As well, half of advisors surveyed said they plan to increase or maintain their allocation to structured notes in the next year.
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