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 steady adoption, with “9 in 10 financial advisors (90%) currently allocating to alternatives, and 88% planning to increase allocations over the next 2 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 research 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.”
With 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.”
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.”
The CAIS Mercer Survey was conducted “from Sept 17 – Oct 17, ’25, 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.”
As covered, CAIS is the alternative investment platform “for independent financial advisors.”
The CAIS platform enables the pre-trade, trade, and post-trade lifecycle of alternative investments and capital market strategies “providing financial advisors and alternative asset managers with a single operating system for scale and efficiency.”
CAIS serves wealth management firms that support financial advisors who oversee “approximately $7.5 trillion in end-client assets.”
Established back in 2009, CAIS is currently “headquartered in New York City with offices in Austin, TX; London; and Red Bank, NJ.”
