Shift to Alternatives: How Wealth Professionals Are Rewriting the Portfolio Playbook

Written By David Stroud

A quiet revolution is unfolding in the world of wealth management. For decades, the industry has clung to traditional portfolio models (e.g., 60/40 equities and bonds). Now, financial advisors and wealth professionals are dramatically reshaping client portfolios, allocating capital to alternative investments at an unprecedented pace.

Alternative investments include:

  • Private equity

  • Real estate

  • Credit (including private credit)

  • Real assets and infrastructure

  • Hedge fund

  • Fund of funds

  • Venture capital

  • Virtual/digital/cryptoassets

At the heart of this shift is a familiar asset class with ancient roots: real estate.

A Rapid Reallocation

By 2029, advisor-led channels in the United States are projected to manage over $3 trillion in alternative assets, more than doubling from $1.37 trillion in 2024. That’s a 17% compound annual growth rate. According to recent survey data, 92% of advisors already allocate to alternatives, and 91% intend to increase those allocations.

The drivers? Market volatility, the limitations of the 60/40 model, and client demand for diversification.

Alternatives, which were once the preserve of institutions and ultra-high-net-worth investors, are now becoming essential tools for wealth professionals seeking better outcomes for a broader client base. The appeal lies in risk mitigation, inflation hedging, capital preservation, and uncorrelated returns, especially in the face of economic uncertainty.

Why It Works for Advisors and Clients

The shift to alternatives isn’t just about performance. It’s also about differentiation.

Offering access to private market investments allows wealth professionals to distinguish themselves in a crowded market. Sixty-two percent of high-net-worth individuals are seeking outside their primary wealth management relationships to invest in non-traditional assets.

Extending into alternatives isn’t a superficial differentiator; it translates directly into client retention, acquisition, and deeper relationships.

Meanwhile, clients benefit from a more resilient and nuanced portfolio. With equity markets behaving unpredictably and fixed-income yields still historically low, alternatives offer a way to preserve capital and generate income. Semi-liquid structures, non-traded REITs, and evergreen funds have further lowered the barriers, enabling access to previously inaccessible opportunities.

Real Estate: The Original Alternative

Among the myriad alternatives, real estate stands out for its ubiquity and legacy. People have invested in land and property long before stock exchanges existed.

79% of all home buyers reported that they viewed a property purchase as a good investment. 39 percent think real estate is a better investment than stocks. Whether buyer perception of property returns is correct is beside the point. People often view property, including their primary residence, as a long-term investment.

That enduring familiarity partly explains why private real estate now ranks just behind private equity and private debt in wealth advisor adoption, with 85% of wealth professionals already allocating to it.

Real estate offers something rare in financial markets: tangible value.

It can provide income through rent, shields against inflation through appreciation, and serves as a ballast in turbulent markets thanks to its low correlation with public equities. It’s both a financial instrument and a lived experience, making it particularly relevant in an era where clients seek both performance and purpose from their portfolios.

Properti Edge: Bridging Wealth Strategy and Real Estate Decisions

As this evolution unfolds, new tools are needed to help individuals treat property like the strategic asset it truly is. Properti Edge is building for that exact purpose. Optimizing return on investment for property requires active management of the asset and optimized leverage.

Properti Edge is a SaaS platform designed to help users treat all property, including their primary residence—as a financial asset. It enables clients to make data-informed decisions across the property lifecycle: transacting at the right time and place, using leverage intelligently, and making renovations that maximize ROI.

Unlike speculative real estate platforms focused on flipping or short-term rentals, Properti Edge supports long-term ownership and wealth accumulation. Its AI-powered advisor and advanced calculators help users understand the trade-offs between ROI, leverage, and value creation. It aligns the personal utility of a home with the financial principles of an investment, without forcing people to choose between the two.

A New Paradigm

Wealth professionals are no longer simply brokers of stocks and bonds. They are evolving into portfolio architects who integrate a wider toolkit of investment strategies, including tangible assets like real estate. In this new paradigm, the house you live in is not just a home. It’s also an opportunity.

Properti Edge is helping wealth professionals and their clients capitalize on that opportunity. As the lines between traditional assets and alternatives blur, platforms like this are not just supporting a trend, they’re building the infrastructure for the next era of wealth management.

David Stroud
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