High net worth individuals (HNWIs) and their financial advisors are keen to increase their allocations to alternative investment strategies such as private credit.
According to a new survey from Brookfield Oaktree Wealth Solutions, 88 per cent of existing alternatives investors are open to investing more into alternatives, while 78 per cent would like to invest in a greater variety of investments beyond what they already own.
Meanwhile, 81 per cent believe that having an alternatives allocation will drive stronger long-term outcomes than a traditional portfolio.
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Among those investors who do not currently have exposure to the alternatives sector, 72 per cent said that they would be interested in investing in the sector if they had a better understanding of the available options.
Furthermore, 70 per cent said they would begin investing in alternatives if their financial advisor recommended it.
Almost 72 per cent of financial advisors told Brookfield Oaktree that alternative investment expertise will be a meaningful driver in growing their book of business. They said that alternative investments came with a broad range of benefits including enhancing absolute returns, client satisfaction, and smoothing revenue volatility.
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“Demand for alternative investment products among high-net-worth investors is growing exponentially, and our proprietary research highlights how deeply investors want their advisors to lead the way,” said John Sweeney, chief executive of Brookfield Oaktree Wealth Solutions.
“This underscores just how vital having access to alternatives can be for advisors looking to retain and grow their client relationships.”
The investment manager surveyed HNWIs in the US and Canada with at least $2.5m (£1.91m) in household investable assets, and financial advisors with an average of $633m in practice assets under management.
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