Adoption Snapshot: Who’s Using Alts—and How Much?
- Mark M. Goldberg
- Sep 22
- 3 min read
Prepared by Mark Goldberg | Alternative Investments Market Intelligence
Methodology & Interpretation Notes
This research note is based on the 2025 Alts Leaders Survey. The charts below reflect the weighted average responses delineated by peer group. Respondents represent wirehouse/regional firms, independent broker-dealers, and RIAs. Results are weighted by 2025 firm capital raise to reflect flows rather than simple averages. Percentages represent client adoption (Alts Use) and average portfolio allocations (Allocation).
A new metric is introduced: Implied % of Client Assets = (% of clients using alts × average portfolio allocation to alts). This approach differs from other surveys that report only an aggregate percentage of client assets. We believe that approach does not sufficiently capture channel differentiation or distinguish between committed participants and others.
This survey identifies both penetration rates and allocation percentages, offering more actionable insights. Readers are encouraged to review the 2024 Research Note for multi-year context.
Executive Summary
The 2025 Alts Leaders Survey highlights both the growth and uneven adoption of private market alternatives across distribution channels. Wirehouse/Regional firms continue to set the pace, combining higher adoption rates with deeper allocations, resulting in the greatest impact on client portfolios. Independent broker-dealers remain constrained by client suitability thresholds and product performance history, while the RIA community shows a bifurcated picture: a small cohort of committed firms driving meaningful allocations, contrasted with a much larger group yet to engage.
Overall, the findings point to a market still in the early stages of mainstream integration. While adoption is broadening, the data underscores significant segmentation by channel and within channels making “average” numbers less instructive without context.
Alts Leaders were survey and responded to the percentage of “Clients” using private market alternatives in 2025 and estimated in 2026. Then were asked for “clients who use private market alternatives” what is the allocation in 2025 and expected allocation in 2026.
Across all clients in your firm, approximately what percentage currently use Alternatives?
For clients who already use Alternatives, what do you expect their allocation to be by year end 2026?
By extrapolating the percentage of clients with their known allocations we can infer the overall percentage in private wealth assets held in private market alternatives.
Key Insights
Wirehouses Lead in Impact: With 23% adoption and 16% allocations, Wirehouse/Regional firms deliver the highest implied share of client assets (~3.75%). Their institutional infrastructure, CIO and research insights, infrastructure support both in technology and human capital are decisive advantages and are driving adoption.
Independent BDs lag, but allocate meaningfully: Adoption sits at 9%, yet allocations for participating clients reach 13%, yielding >1% implied client assets. Structural hurdles, lower client wealth and suitability restrictions constrain broader growth. Some respondents noted historical performance issues with vintage real estate funds has dampened enthusiasm.
RIAs Tell Two Stories: National RIAs that are committed to alternatives achieve >29% adoption and ~11.2% allocations (3.35% implied assets). Yet, capital-weighted averages fall to just 0.78% because most RIAs remain on the sidelines.
Wide Dispersion Persists: Adoption ranges from single digits to >80% among firms, reflecting differences in infrastructure, education, and operational capabilities and firm preferences.
Early-Stage Market Dynamics: Interviews confirm that firms with dedicated resources scale adoption more effectively, while others remain cautious due to illiquidity, operational, and fee sensitivities.
Channel Interpretations
Wirehouse/Regional
23% adoption, 16% allocations → 3.75% implied share of client assets. Roughly 3× Independent BDs and 5× the RIA community overall. Supported by top-down CIO research, product specialists, and significant investment in operational support. This peer set has the greatest number of HNW and UHNW clients which allows for diverse strategies and fund structures (QP and accredited investor only) than their counterparts.
Independent BDs
Adoption modest at 9%, allocations at 13%. Yields >1% implied client assets, but constrained by client wealth levels and accreditation thresholds. Interviews suggest vintage real estate fund performance continues to weigh on adoption momentum.
RIAs
Committed RIAs: >29% adoption, ~11.2% allocations → 3.35% implied client assets. Broad RIA averages: just 0.78% implied assets, reflecting many firms not yet participating. Barriers include indexing preferences, operational limitations, and fee sensitivity.
Observations & Implications
Wirehouses Lead on Impact. The combination of adoption and allocation creates the largest client portfolio impact. CIO-led research and advisor support reinforce positioning.
Independent BDs Constrained by Suitability – Structural headwinds continue, limiting access and breadth of product approval.
RIAs: Two Stories in One – A subset is highly committed, but most remain disengaged, dragging down capital-weighted averages.
Wide Dispersion Signals Early-Stage Market – High variation across firms reflects uneven infrastructure and operational readiness.
The proliferation of evergreen funds with lower minimums and perpetual availability will over time add to client penetration rates.
The wide range (high/median/low) suggest we are at an early stage of adoption.
During interviews many noted the desire to “catch up” to firms with robust and sophisticated offerings for their clients.