Deep alternatives knowledge among advisors has nearly doubled as evergreen fund appetite grows
Advisors in the US and Canada are moving well past the basics when it comes to alternative investments, with a new survey finding that the proportion reporting deep knowledge of the asset class has nearly doubled in just one year.
The survey found that almost one third of advisors now report deep alternatives knowledge, compared with roughly 17% the previous year.
The research, published by Brookfield Asset Management through its Alts Institute, was carried out by independent firm CoreData and polled more than 600 financial advisors with an average practice AUM of US$657 million, alongside 60 gatekeepers responsible for evaluating alternative managers and products across the US, Canada, the UK and Switzerland.
A category the researchers call "Power Users," defined as advisors scoring highly on Brookfield's alternatives index with broad current usage across a range of vehicles and products, has grown to 40% globally from 26% in North America in 2024. Those advisors allocate an average of 22% of client portfolios to alternatives.
Client conversations
Among US and Canadian advisors, 71% said client conversations have moved away from foundational education toward discussions about portfolio goals and how alternatives can contribute to achieving them. Meanwhile, 73% said they now deploy alternatives as much for risk management as for return generation.
Liquidity considerations are playing a growing role in implementation, with 82% of respondents saying that understanding client liquidity needs has helped them put alternatives to work more effectively.
Looking ahead, 57% said they plan to increase their use of evergreen funds over the next two years, and 68% identified self-funding or reinvesting proceeds as the most practical way to expand clients' allocations to the asset class.
Education remains a significant factor in driving adoption, with 66% of advisors saying that educational materials have been central to expanding their use of alternatives.
Expertise is also gaining commercial weight: 77% described alternatives knowledge as a must-have capability, while 73% said it represents a meaningful driver of practice growth. Portfolio construction support was cited by 72% as among the most valuable services an alternatives partner can offer.
"We are seeing a significant shift in how advisors approach alternatives,” said John Sweeney, chief executive of Brookfield's private wealth business. “As familiarity with the asset class has grown, the conversation has evolved from understanding what alternatives are to understanding how they can be used within a portfolio to help achieve specific client objectives. That evolution is helping advisors build deeper expertise, integrate alternatives more thoughtfully into portfolios and ultimately deliver better outcomes for clients."
