Financial advisors are increasingly tapping into alternatives, not only to diversify client portfolios, but as a way to attract new clients, according to a new survey by fintech firm iCapital.
As investors show strong interest in private markets solutions, advisor education and technology needs are top priorities, iCapital reported in a news release on its 2025 Global Advisor Survey. The survey of over 600 registered financial professionals across the U.S., Europe, Asia Pacific, and the Middle East focused on alternative investing.
Embracing Alternatives as a Growth Engine
Alternatives can be a powerful engine of client growth for advisors, who now rank that alongside access as a top reason for adoption.
The leading driver of alts engagement in the United States is attracting new clients. More than nine in 10 advisors (96%) say they will maintain or expand their exposure to alternatives over the next year.
American advisors’ appetite for alternatives outshines those of other regions, as they are are more than twice as likely to increase allocations. The most favored asset classes continue to be private equity (66%), credit (56%), and hedge funds (54%), indicating a focus on private markets and income generation, iCapital reported.
Additionally, 77% of advisors expect evergreens to account for at least 10% of client portfolios, with those in the U.S. saying they expect evergreen exposure to increase to 11% to 15% in two years.
Technology, Education Remain Top Priorities
Advisors now rank technology and implementation as their number one priority to meet growing client demand. But 55% say they have difficulty assessing liquidity and risk across asset classes, while 53% struggle to understand the impact of alternatives on portfolios.
Ranking next as an advisors priority is foundational learning, according to the survey. Advisors want more advanced guidance on reporting, portfolio construction, and operational integration as they increasingly turn to alts, iCapital said.
Advisors said operational friction — especially client reporting and documentation — is a top barrier to broader alternatives adoption. Also posing a challenge are regulatory hurdles like investor eligibility.
The top hurdles, ranked, are:
Client reporting: 20%
Documentation due diligence: 13%
Investor eligibility standards: 13%
Little/no access to investment offerings: 11%
Complexity: 10%
The Survey
The survey queried more than 600 registered financial professionals from nine countries, including the U.S., as well as in Europe, APAC and the Middle East. Respondents were financial professionals across a variety channels, including private wealth, national and regional broker-dealers, independent BDs, and RIAs, and spanned a range of AUM levels of those actively engaged in alternative investing.
