Advisors Cement Alternatives as a Core Portfolio Pillar 

Alternative investments have officially entered the financial mainstream, according to the fourth annual CAIS–Mercer study of nearly 800 financial advisors. The survey reveals widespread adoption, with 90% of advisors currently allocating to alternatives and 88% planning to increase those allocations over the next two years. 

Nearly half of respondents (49%) now assign more than 10% of client portfolios to alternatives, while three-quarters (74%) allocate at least 5%. Access is also expanding beyond the ultra-wealthy: four in five advisors (80%) serving non-accredited investors now offer alternative investments, signaling the growing democratization of private markets. Education and client suitability remain top priorities as advisors scale this next phase of access. 

“This year’s results send a clear message: advisor demand for alternatives isn’t a passing trend—it’s a structural shift,” said Brad Walker, President of CAIS. “We’re seeing advisors integrate alternatives as a core part of portfolio construction.” 

To meet rising demand, advisors are prioritizing technology that streamlines workflows and enhances analysis. Most (77%) favor model portfolios to simplify implementation, while more than half (55%) cite analytical tools as their most valuable tech feature. 

“Four years of consistent data show advisor conviction in alternatives now rivals institutional levels,” added Gregg Sommer, Partner and U.S. Financial Intermediaries Leader at Mercer. Top allocations include private equity (89%), private credit (88%), and real estate (86%), alongside growing interest in AI, tax-advantaged strategies, and energy transition investments.