ADISA’s Annual Market Prediction Research Shows Major Surge in Alts Revenue

Financial firms have expanded their alternative investments options by quantity, sponsor, and asset class – providing financial professionals with more choice when it comes to customizing alternative allocations to best suit client investment objectives. Also and unsurprisingly, advisers continue to focus on investments that produce higher yields and/or tax advantages. These are just two of the findings from ADISA’s 2025 market prediction survey.

The Alternative & Direct Investment Securities Association – the nation’s largest trade association for the alternative investments industry – conducted the 2025 survey with the participation of more than 100 broker-dealers, registered investment adviser firms, and family offices ranging in size from 50 to more than 1,000 advisers.

“These results provide financial firms with valuable insights into how they compare to their peers, while sponsors gain a broader understanding of what broker-dealers, RIAs, and family offices are projecting for the remainder of 2025,” said Greg Mausz, ADISA board member and co-author of the survey.

Demographics from the research revealed that pure RIA firms were more common in 2025 than in ADISA’s 2019 market prediction survey, while hybrid broker-dealer-RIA firms remained the most prevalent.

Other key findings from the survey indicate that:

• 1031 exchanges are predicted to lead in year-over-year growth, which is in line with the potentially lower moves in interest rates;
• Oil and gas income funds are drawing increased interest as investors look to further diversify beyond real estate and private credit; and
• All types of private equity are beginning to gain traction with retail investors, and this trend is anticipated to continue in 2025.

Compared to ADISA’s 2019 survey, 1031 exchange offerings are now the most popular, pushing real estate-related Reg D funds to second place. These are followed by private equity Reg D funds (including venture capital) and private credit Reg D funds.

Alternative investments continue their growth with RIAs and in fee-based accounts. Still, interval/tender funds, non-traded net asst value real estate investment trust, and business development companies are the most commonly allowed in fee-based platforms because of their liquidity and regular valuations. Meanwhile, private real estate, oil and gas, 1031 exchange offerings, and opportunity zone funds have not gained traction in fee-based accounts.

Survey findings revealed that revenue generated from alternative investments at the responding firms dramatically increased in 2024, jumping more than 57% as compared to 2023. Also, 75% of firms said they anticipated increased overall revenue in 2025, including increasing revenue from alternative investments allocations.

“Our 2025 market prediction survey results reflect a maturing alternative investments space where firms are embracing complexity, seen in the widespread adoption of Rule 506(c) – [87% of responding firms reported using the Rule 506(c) exemption] – increased allocation to traditional real estate programs and private credit, while growing interest in digital assets and AI,” said John Harrison, executive director of ADISA.

“As these trends take hold, ADISA remains focused on delivering the education and resources our members need to make informed, forward-looking decisions in an increasingly sophisticated market,” added Harrison.

In related insights, findings showed that a majority of respondents were interested in ADISA covering cryptocurrency at future conferences. Expanding beyond the traditional forward-looking purpose of the survey, results from a new section about current trends revealed that while the adoption of AI by financial advisory firms remains in its early stages, its primary applications are concentrated in marketing, administration, and sales. Many firms report only occasional use of AI, underscoring the nascent phase of integration across the industry.

Reflecting the strong interest in the topic, the session “Artificial Intelligence: A Super-Agent in the Workplace” was the highest-rated breakout session at ADISA’s 2025 Spring Conference.

ADISA was founded in 2003 and has approximately 5,000 members who are key decision makers, representing more than 220,000 professionals throughout the nation – including sponsor members who have raised in excess of $200 billion in equity and serve more than 1 million investors.

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