Half of Advisers Allocate More Than 10% to Alts, According to CAIS-Mercer Study
Alternative investments are increasingly transitioning from a niche offering to a mainstream component of retail portfolios, according to the findings of the fourth annual CAIS and Mercer survey.
The study, which surveyed nearly 800 financial advisers, reveals widespread adoption across the financial services community. Nine in 10 financial advisers, or 90%, now allocate to alternative investments, and 88% plan to increase allocations over the next two years.
According to the survey, nearly half of advisers, or 49%, now allocate more than 10% of client portfolios to alternatives, while almost three-quarters, or 74%, allocate at least 5%. The findings also revealed that alternatives are reaching a wider client base: four in five advisers, 80%, serving non-accredited investors now allocate to alternative investments, underscoring the growing democratization of private market access.
Advisers cited two top priorities for responsibly scaling this growth: client education and suitability.
The 2025 CAIS Mercer Survey was conducted from Sept. 17 to Oct. 17, 2025, including responses gathered at the coinciding CAIS Alternative Investment Summit. Respondents included independent registered investment advisers, broker-dealer affiliates, family offices, and other adviser professionals.
Brad Walker, president of CAIS, stated: “This year’s results send a clear message: adviser demand for alternatives isn’t a passing trend, instead it’s a structural shift. We’re seeing advisers integrate alternatives as a core part of portfolio construction. As technology and AI continue to streamline access, we expect these allocations to deepen even further.”
Advisers reported allocating most heavily to core alternative asset classes: private equity at 89%, private credit at 88%, and real estate at 86%. Interest also grew in thematic areas, including artificial intelligence at 70%, tax-advantaged strategies at 58%, and energy transition-related investments at 36%. Additionally, half of the advisers surveyed plan to either increase or maintain their allocation to structured notes in the next year.
The shift has intensified the focus on workflow optimization. The majority of advisers, or 77%, prefer model portfolios to simplify alternative investing. Additionally, over half, 55%, regard analysis tools as the most valuable technology feature.
Despite the focus on technology and digitization – preferred by 47% of those surveyed – adviser learning remains predominantly human-led, with personal interaction through one-on-one meetings and live events being the preferred approach for exploring opportunities.
“Four years of consistent results indicate that advisers have a level of conviction around alternatives that parallels other institutional investors,” said Gregg Sommer, partner and U.S. financial intermediaries leader at Mercer. “As adviser adoption continues, enhanced due diligence and research tools intended for the adviser community will be crucial in helping meet this demand.”
At the aforementioned 2025 CAIS summit, the company unveiled CAISey, an AI-powered solution designed to help speed up fund discovery and analysis. The launch introduced an advanced tool directly embedded in the CAIS platform that uses conversational intelligence to simplify the complex workflow of researching alternative funds. CAISey is positioned as a new interface for information, moving beyond traditional database searches.
Founded in 2009, CAIS serves more than 62,000 independent financial advisers who oversee approximately $7.5 trillion in client assets. Providing access to hedge funds, private equity, private debt, real estate, digital assets, and structured notes, the CAIS platform powers the pre-trade, trade, and post-trade lifecycle of alternative investments and capital market strategies. The company has offices in New York; Red Bank, N.J.; Austin; and London.
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