Simplifying Retail Channel Private Markets Adoption: Alternative Asset Allocation Models
March 11, 2026
Financial advisors are motivated to incorporate alternatives—notably private markets strategies—into client portfolios; however, access to alternatives remains a key challenge. Asset allocation model portfolios can help address the challenges advisors face and alleviate friction points that prevent greater adoption.
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Key Findings:
Model Providers Respond to Advisor Demand
More than half of asset manager and third-party strategist model providers agree that their firm is currently or is considering offering asset allocation model portfolios with semi-liquid/illiquid alternatives. The motivation for offering these strategies stems from significant demand for these solutions from the advisors with whom they work, according to 44% of research participants.
Unified Managed Accounts Simplify Advisor Access
To remove hurdles to alternative adoption, greater focus should be placed on creating an “alternatives in models” solution within a unified managed account (UMA). The managed account industry is already moving in this direction, and these solutions will also reduce operational burdens for advisors while injecting professional decision-making into alternative allocations and investment product selection.
Education Remains Critical to Adoption
More than 30% of financial advisors agree they could use education about discussing alternatives with clients (47%), portfolio construction guidance (41%), market strategy guidance (32%), and sophisticated exposure guidance education (31%). Baseline asset-class-level education is still viewed as valuable by 29% of financial advisors.
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