There’s no denying that alternative investments have entered a new era, one where interest is no longer limited mostly to institutions and elite investors, as it once was. In fact, high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals are embracing them at a rapid rate, with private wealth allocations in the area expected to triple over the next decade, per research from BNY. Yet, new research shows more than half of HNW investors cited legal, risk and compliance challenges as a key barrier to getting involved in the space (in comparison to traditional investment routes).

This increase in demand is fueled by a bigger appetite for stronger returns, increased diversification and entry to a once-exclusive asset class. However, as accredited investors increasingly seek and gain access, a new set of challenges opens up, especially around the operational and compliance realities that come with it. The nuances that come with alternative investments tend to confuse clien