Wirehouses lead alternatives adoption, RIAs face strategic crossroads

While private market alternatives are becoming more widely adopted, their use remains uneven across distribution channels.

The 2025 Alts Leaders Survey from Alternative Investments Market Intelligence reveals that wirehouse and regional firms lead the field, combining higher client adoption rates with meaningful allocations, while independent broker-dealers and RIAs show a more fragmented landscape.

Wirehouses report that 23% of clients use alternative investments, with an average portfolio allocation of 16%, translating into roughly 3.75% of total client assets.

“Their institutional infrastructure, CIO and research insights, infrastructure support both in technology and human capital are decisive advantages and are driving adoption,” the survey notes.

These firms also benefit from top-down research support, specialist teams, and a higher concentration of high- and ultra-high-net-worth clients, allowing more sophisticated strategies and access to complex fund structures.

For IBDs, adoption remains modest at 9%, but clients who participate allocate an average of 13%, yielding slightly more than 1% of implied assets. Growth constraints include suitability thresholds, lower average client wealth, and concerns over historical fund performance, particularly in vintage real estate funds.

Meanwhile, although a small cohort of committed national RIAs achieves adoption rates exceeding 29% with allocations averaging 11.2%, equating to 3.35% of implied assets, the broader RIA population remains largely inactive, bringing the capital-weighted average down to just 0.78%.

“A subset is highly committed, but most remain disengaged, dragging down capital-weighted averages,” the survey observes.

Across all channels, adoption varies widely, from single digits to over 80%, reflecting differences in operational readiness, infrastructure, and advisor education. Firms with dedicated resources are more successful at scaling alternatives, while others remain cautious due to illiquidity, fees, and operational challenges.

“Adoption of private market alternatives isn’t a uniform trend, it’s a story of leaders, laggards, and those still watching from the sidelines” said Mark Goldberg, founder of ALTSMI. “Wirehouses are institutionalizing adoption with infrastructure and CIO-driven support, while a subset of RIAs is proving what committed firms can achieve. But for much of the market, alternatives remain early stage, which means opportunity for managers and distributors alike.”