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Nearly 9 in 10 Financial Advisors Plan to Increase Alternatives Allocations Over Next Two Years, CAIS and Mercer Survey Finds

Press Release

• by CAIS

Alternative asset managers identify private wealth channel as greater priority for their firm compared to two years ago

NEW YORK – (BUSINESSWIRE) – Amid ongoing market volatility and tightening monetary policy, nearly nine in 10 financial advisors (88%) intend to increase their allocations to alternative asset classes over the next two years, according to a recent independent survey conducted by CAIS and Mercer. The study also found that 89% of alternative asset managers and other financial professionals have identified the private wealth channel as a greater priority for their firm compared to two years ago.

Investors are increasingly turning to alternative investments to seek diversification, capital preservation, and/or uncorrelated returns. More than half of the 97 financial advisors surveyed (53%) are considering raising their alternative asset allocations to more than 15% over the next two years, while more than one fifth (21%) estimate their alternative asset allocations will exceed 25%. Only 8% of respondents do not plan to increase their alternative asset allocations within the same timeframe.

“We are increasingly seeing advisors target a three-dimensional portfolio that more closely resembles a 50/30/20 model across stocks, bonds, and alts,” said Matt Brown, Founder and CEO of CAIS. “These findings would seem to confirm that ‘The Great Reallocation’ of capital into alternative strategies is well underway within the private wealth channel.”

Financial advisors have historically under-allocated to alternatives compared to institutional investors, which often allocate between 30% and 50%.1 Aside from a lack of liquidity, advisors cited high levels of administration (51%) and concerns around due diligence (42%) as some of the greatest challenges to adopting alternatives in their portfolios. Additionally, three-quarters of the 101 asset managers and other investment professionals surveyed (75%) flagged a lack of education around alternative products and strategies as one of financial advisors’ greatest challenges in accessing alternative asset classes.

“These insights are consistent with findings from Mercer's Global Wealth Management Survey, which highlighted complexity and due diligence as critical considerations for investors that want to invest in alternatives. The key is to provide independent financial advisors with the same research and resources currently available to larger institutions, especially when it comes to enhancing portfolio allocations and mitigating risk through private market opportunities.” said Gregg Sommer, Partner and US Financial Intermediaries Leader, Mercer. “These survey results point to the importance of and demand for due diligence around alternative investment opportunities.”

As technology-driven platforms seek to enable more efficient access to alternatives for financial advisors, 85% surveyed have confirmed that their clients are looking to invest in either new products or structures within alternatives, while more than half (59%) said their clients are looking for both. At the same time, nearly seven in 10 asset managers and financial professionals surveyed (68%) revealed that their firms are rolling out these new investment products and/or structures to meet demand – including interval funds, 40 Act Funds, and non-traded REITS.

Financial advisors surveyed cited private equity (75%), private credit (73%) and real assets (71%) as the top-three alternative asset classes best suited to withstand current economic conditions.

Survey Methodology

The survey was conducted on October 17 – 19, 2022, at the CAIS Alternative Investment Summit, a three-day thought leadership event in Los Angeles, California. Respondents included registered investment advisors (RIAs), financial advisors, alternative asset managers, and other investment industry professionals. The data is based on responses from 198 respondents, 97 of whom identified as financial advisors.

About CAIS Summit

The CAIS Alternative Investment Summit is an annual three-day thought leadership event in Beverly Hills, California which is tailored to independent financial advisors. The October 17 – 19th, 2022, event – which was CAIS’ inaugural Summit – attracted over 500 attendees including over 40 leading alternative investment managers and hundreds of independent financial advisors from RIAs and IBDs who oversee more than $2 trillion in assets.

About CAIS

CAISis the pioneer in democratizing access to and education about alternative investments and structured notes for independent advisors, asset managers, and bank issuers, empowering them to engage and transact on a massive scale. We believe that the combination of industry-leading technology and human interaction throughout the pre-trade, trade, and post-trade experience delivers superior operational efficiency and a world-class client experience. 

 CAIS provides advisors with access to a broad selection of alternative investment strategies, including hedge funds, private equity, private debt, real estate, infrastructure, and structured notes, allowing them to capitalize on opportunities and withstand ever-changing markets.  

CAIS streamlines the end-to-end transaction process through digital subscriptions and powers integrated reporting through leading US custodians and reporting providers, making investing in alternatives simpler.  CAIS also enables advisors to centralize all their alts and notes on one platform, whether they were purchased on or off the CAIS platform, through CAIS Solutions, and helps advisors create custom fund vehicles around ideas they source. 

Founded in 2009, CAIS, a fintech leader, supports over 34,000 advisors who oversee more than $4.5 trillion in network assets. Since its inception, CAIS has facilitated over $30 billion in transaction volume. CAIS has offices in New York, Los Angeles, Austin, and London. For more information about CAIS, please visit    

 Securities offered through CAIS Capital LLC, member FINRA, SIPC.   

About Mercer

Mercer  believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Mercer is a business of  Marsh McLennan, the world’s leading professional services firm in the areas of risk, strategy and people, with more than 85,000 colleagues and annual revenue of over $20 billion. Through its market-leading businesses including  Marsh,  Guy Carpenter  and  Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit Follow Mercer on LinkedIn  and  X.



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