Alternative investments are gaining attention and are positioned to dominate retail portfolios in five years, according to IBS intelligence. Once accessed by only large institutional investors, private markets are now more accessible to individual investors, including high-net-worth-individuals and family offices.
Asset managers have been increasingly gaining interest in private markets, with private equity and real estate and the forefront of this trend. With technological advancements contributing to this shift, digital platforms, blockchain and tokenization are all critical technologies for private market distribution.
However, there are still significant challenges when entering the alternatives market. Regulatory restrictions and liquidity concerns are both barriers to entry. Firms are increasingly outsourcing in order to navigate these challenges and enhance operational and cost efficiency.
