ETFs & Funds
Home›ETFs & Funds›Fund Industry›Advisors to add $2 trillion in alternatives over five…
Advisors to add $2 trillion in alternatives over five years
Cerulli projects advisor-held ownership of less-than-fully-liquid alternatives will reach $4.2 trillion, with interval funds reaching about $132 billion across 147 funds by end of 2025.
Financial advisors are expected to drive continued growth in alternatives, even after a period of client redemptions in parts of the private markets, according to Cerulli Associates as summarized by ETF Trends.
Cerulli’s U.S. Private Markets 2026 outlook projects advisor-intermediated ownership of less-than-fully-liquid alternative investments will rise by $2.0 trillion over the next five years, adding to the $2.2 trillion that advisors already hold today.
The report highlights that diversification remains the top rationale, with Cerulli finding 82% of advisors cite diversification as a goal. It also points to advisors’ need to show value to clients as a growth driver, alongside demand for income-generating investments, with 57% of asset managers citing that factor.
Within the product universe, Cerulli says interval funds have been a standout. The firm estimated these funds reached about $132 billion in assets across 147 funds by the end of 2025, and it noted that 2025 asset growth of 33% exceeded the 25% increase in the number of funds launched. ETF Trends also notes Cerulli’s view that interval funds can be appealing to RIAs because the structure typically avoids performance fees and embedded commissions found in other semi-liquid vehicles.