Fourth Annual CAIS Mercer Survey Shows Alts Moving From Niche to Norm With Half of Advisors Now Allocating 10%+ to Alts

Nine in 10 advisors now allocate to alternative investments and nearly half of respondents dedicate more than 10% of client portfolios, with demand growing from non-accredited clients

New York, NY – December 10, 2025 – Alternative investments have moved from the margins to the mainstream, according to insights from nearly 800 financial advisors surveyed in the fourth annual study conducted by CAIS and Mercer. The results reveal widespread adoption, with nine in 10 financial advisors (90%) currently allocating to alternatives, and 88% planning to increase allocations over the next two years.

According to the survey, nearly half of advisors (49%) now allocate more than 10% of client portfolios to alternatives, while three-quarters (74%) allocate at least 5%. The findings also revealed that alternatives are reaching a wider client base: four in five advisors (80%) serving non-accredited investors now allocate to alternative investments, underscoring the growing democratization of private market access. Advisors cited client education and suitability as top 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,” said Brad Walker, President of CAIS. “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.”

With growing demand for alternatives, advisors are increasingly focused on optimizing workflows. The majority of advisors (77%) prefer model portfolios to simplify alternative investing, while more than half (55%) regard analysis tools as their most valuable technology feature. Integrations (49%) and digitization (47%) followed closely behind, reinforcing the increasing role of technology and data-driven insights in advisor practices.

Despite the focus on digitization, responses indicate that advisor learning remains human-led. Personal interaction, through one-on-one meetings and live events, remains the preferred approach for advisors exploring opportunities in alternatives.

“Four years of consistent results indicate that advisors have a level of conviction around alternatives that parallels other institutional investors,” said Gregg Sommer, Partner and US Financial Intermediaries Leader at Mercer. “As advisor adoption continues, enhanced due diligence and research tools intended for the advisor community will be crucial in helping meet this demand.”

Advisors reported top allocations across private equity (89%), private credit (88%), and real estate (86%). Interest in thematic areas also gained momentum, including artificial intelligence (70%), tax-advantaged strategies (58%), and energy transition-related investments (36%), reflecting both diversification goals and client interest in innovation-driven strategies. Also, most advisors (60%) surveyed plan to increase or maintain their allocation to structured notes in the next year.

To view the full report and findings, click here.

Survey Methodology

The 2025 CAIS Mercer Survey was conducted from September 17 – October 17, 2025, including responses gathered at the CAIS Alternative Investment Summit, the industry’s marquee event for independent advisors and asset managers hosted in Beverly Hills, CA. Respondents included independent RIAs, broker-dealer affiliates, family offices, and other advisor professionals. The data reflects responses from nearly 800 financial advisors.

For questions about the survey, please contact, Morgan Von Ahsen, Head of Communications, CAIS at [email protected].

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