- While most advisors report availability of REITs on their platforms, fewer than half of advisors note availability of private equity, private debt, and hedge funds. Wirehouse advisors have more access than other channels to hedge funds, private equity, and REITs. Unsurprisingly, advisors with the largest books (+$500M) report the most access to illiquid and semi-liquid alternatives. Notably, BDCs and Interval Fund are less widely available than other structures, partly due their operational burden.
- Alternative asset managers have ambitious plans for growing assets in the intermediary channels. Advisor access to alternatives is critical to their success, along with education. Many traditional alternative managers are bolstering national accounts (along with wholesaler headcount) and operational roles to support their inroads into wealth management.
- Additionally, most alternative investment managers have signed on with at least one of the alternative tech platforms (e.g., iCapital, CAIS) to boost accessibility of their products among wealth advisors.
Availability of Alternative Products to Advisors
Source: FUSE Research Network, WealthManagement.com