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Alternatives & private markets
How private markets and other alternatives are reaching advisors and their clients.
Asset managers that once sold mainly to pensions and endowments are building products for individual investors through financial advisors. The products include private credit, private equity, real estate and infrastructure, usually packaged in vehicles such as interval funds, tender-offer funds, non-traded REITs and business development companies.
Many of these vehicles limit withdrawals to set windows, and many are available only to investors who meet wealth or income thresholds. Advisors weigh their potential for diversification and return against fees, valuation methods, liquidity limits and the due diligence they require.
Financial ADVSR covers the managers, platforms and products bringing alternatives to wealth management, and the firms that use them.
From the Newsroom
- Phil Scott and Jim Atwood leave J.P. Morgan to launch $18.6 billion Latigo Peak
- Private equity backed three of every four RIA deals this spring
- Deloitte survey finds fund groups expanding AI use in valuation as SEC scrutiny grows
- Morningstar survey finds advisors more worried about geopolitics and inflation, and slightly more active in private markets
Latest on alternatives & private markets
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Questions
What are alternative investments?
Investments outside publicly traded stocks, bonds and cash, such as private equity, private credit, real estate, infrastructure, hedge funds and commodities.
What is an interval fund?
A registered fund that buys back a set percentage of its shares from investors at regular intervals, often quarterly, instead of offering daily redemptions. That lets it hold less-liquid assets such as private credit.
Who can invest in private funds?
Many private offerings are limited to accredited investors. Under the SEC’s definition, individuals generally qualify with net worth over $1 million excluding their primary residence, or income over $200,000 ($300,000 with a spouse or partner) in each of the past two years, or with certain professional licenses. Some funds require qualified purchasers, a higher bar.
What are the risks of private market funds?
Limited liquidity, higher and more complex fees, less frequent and less transparent valuations, and dependence on the manager’s selection skill. Advisors recommending them must consider whether they suit each client.