Article

Retail Alts Present Wealth Managers with a Big Opportunity—and Big Operational Challenges

Wealth managers must understand the operational complexities and available solutions to incorporate alternatives into their portfolios and efficiently maintain client confidence.

The alternative investment space is rapidly evolving, with retail investors holding a significant portion of the $11 trillion in global assets under management. This trend is expected to accelerate, with projections showing retail participation in alternatives growing to $1.5 trillion by 2025. As public markets shrink and private market opportunities expand, the demand for alternative investments like private equity and real estate funds is rising. Wealth managers are uniquely positioned to guide their clients through the complexities of these investments, leveraging technology to manage and report on alternative assets effectively. This article explores the implications of this trend for wealth managers, highlighting both the opportunities and challenges posed by the increasing popularity of "retail alts."