The adviser-oriented wealth management market is the next big frontier for alternatives, with asset managers tailoring hedge, private equity, private debt and other strategies to appeal to high-net-worth and affluent investors. FUSE Research Network, an asset management research and consulting provider, estimates that wealth-management channels such as broker-dealers and Registered Independent Advisors (RIAs) account for $1.4 trillion of alternatives assets in the U.S., and expects assets under management (AUM) to rise by a 17 percent compound annual growth rate to hit $3 trillion in 2029.
FUSE forecasts such strong growth because the overall alternatives market is growing quickly, and wealth channels’ share of alternatives — especially illiquid alternatives — will expand during the coming years. While many alternatives for the wealth channel are still restricted to accredited investors, investment gains are increasing the numbers of investors meeting the $1 million-net