LPL Highlights Private Markets Among Key Alts Strategies in Midyear Report
Wealth management firm LPL Financial LLC (Nasdaq:LPLA) released its Midyear Outlook 2025. According to the report, LPL is maintaining a positive outlook regarding alternative strategies due to their ability to help enhance portfolio stability during uncertain markets.
In particular, the report highlighted private markets as a key area of potential interest. LPL’s research team said that infrastructure investments continued to show resilience in the first half of the year, buoyed by both public and private initiatives. Continued investment could further support the space throughout the year. Secondary private equity markets have seen increased liquidity and deal flow, as limited partners and general partners seek portfolio adjustments and continuation funds. Private credit offers attractive returns compared to public markets, though competition for quality deals and interest rate risks warrant caution.
The report also highlighted certain niche strategies like volatility arbitrage, which takes advantage of volatility dislocations, and cross-asset tail risk plays, which are designed to capitalize on episodic market disruptions, as potential diversifiers.
LPL also reported that while the U.S. equity market briefly flirted with bear territory due to tariff concerns in the first half of the year, it rebounded to near-record highs following a temporary enforcement pause. Yet unresolved trade negotiations, the murky impact of potential deregulation, and persistent economic uncertainty may be expected to challenge markets in the months ahead. In light of this, LPL suggests that market-neutral strategies may continue to perform well and add value to portfolios.
Overall, as economic and political uncertainty are expected to persist throughout the year, LPL stresses the importance of diversification beyond the standard 60/40 portfolio with a focus on market-neutral strategies, certain niche strategies, and private markets.
In addition to their latest report, LPL recently announced the acquisition of the $750 million-asset Waznik Heike Group, a team that included 11 financial advisers. Further supporting alternative investments, the company also launched its new alternative investments education hub known as Alts Learning Hub.
As of May 31, 2025, LPL supported more than 29,000 financial advisers. Total advisory and brokerage assets were $1.85 trillion, an increase of $66.6 billion, or 3.7%, compared to the end of April 2025.
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