Alternative Assets Industry Reports Growing Private Wealth Allocations

February 10, 2026

By: Wiss Team

Wiss Team

Alternative asset managers are reporting increased capital flows from private wealth channels as semi-liquid fund structures facilitate broader retail investor access to strategies historically reserved for institutional clients. Recent corporate earnings from Blackstone and EQT highlighted this trend, with additional major firms scheduled to report in the coming days.

The Earnings Season Picture

Blackstone reported what the firm described as its best results in 40 years. During the analyst call, Chairman and CEO Steve Schwarzman noted that capital raised in private wealth grew 53% year-over-year in 2025, reaching $43 billion, with expectations for continued strong inflows in 2026.

EQT’s results showed that 26% of all capital raised during the 2024-2025 period came through private wealth channels. The firm’s investor presentation noted that its four evergreen funds, with a net asset value of $4.1 billion, generated $1.05 billion in flows during the first half of 2025.

Additional reporting is scheduled from major alternative asset managers: Hamilton Lane on February 4, KKR and Ares on February 5, Carlyle on February 6, and Apollo on February 11. Each has previously discussed the strength of private wealth flows and made business decisions reflecting that activity.

Carlyle CEO Harvey Schwartz noted that inflows from private clients into evergreen funds have risen from $300 million per quarter to $3 billion since he joined in 2023. KKR CFO Rob Lewin reported the firm’s “K-series” vehicles—its wealth management-focused funds—raised $4.1 billion in Q3. Apollo Global Management President Jim Zelter said the July-September period brought $5 billion in inflows from this segment.

Semi-Liquid Product Development

Evergreen products, which offer more liquidity than traditional alternative structures, are viewed as facilitating the expansion of this distribution channel. Eric Deram, Managing Partner at Flexstone Partners, wrote in Natixis’s 2026 Alternatives Outlook that evergreen semi-liquid products are gaining traction with both institutional and individual investors due to their simplicity and liquidity profiles.

Product development in this area has become a priority for major asset managers. Ares Management Corporation announced in its Q3 results that it raised its 2028 target for assets under management in its semi-liquid products in the wealth segment from $100 billion to $125 billion.

JP Morgan Asset Management noted in a recent report that retail investors and pension systems are increasing participation in private markets, supported by regulatory changes that expand access to alternatives and by growing interest in infrastructure and real assets. The firm characterized this as democratization of access, reshaping investor bases.

Advisor Allocation Data

The fourth edition of the Alternative Investment Survey by CAIS and Mercer found that nine out of ten U.S. financial advisors include alternatives in portfolio management. Within that group, 16% allocate more than 20% to alternatives, while 49% maintain more than 10% exposure.

Independent registered investment advisors and family offices appear to lead adoption according to the survey data. In this segment, one in four advisors allocates more than 20% to private markets. Looking forward, 88% of respondents indicated plans to increase alternative allocation over the next two years.

Among advisors using alternatives in client portfolios, 82% use evergreen funds, either exclusively or in combination with other structures, for most clients. Private equity and private credit remain the most utilized categories.

European Private Client Data

The Private Banks and Wealth Managers Fund Selectors Survey by Novantigo showed that ultra-high-net-worth clients have the highest exposure to private assets in Europe. Of this group, 33% allocate between 5% and 10% of portfolios to such investments; 23% allocate between 10% and 15%; and 26% allocate more than 15%.

Novantigo noted in Efama’s Asset Management in Europe report that all client segments are expected to increase private markets exposure, particularly in the high-net-worth and ultra-high-net-worth segments.

The expansion in Europe has been supported by regulation, with the Eltif 2.0 framework opening access to semi-liquid strategies for individual investors in the region.

Industry Structure Implications

S&P Global Ratings stated in its Global Asset Manager Sector View for 2026 that retail investors are expected to become a growing source of assets under management and fee-related revenues. The agency also noted that products designed for individual investors may be more prone to volatility due to higher redemption rates, potentially resulting in more volatile EBITDA and leverage for asset managers with greater retail concentration.

Deloitte’s Investment Management Outlook for 2026 indicated that a significant share of transactions in 2025 targeted wealth management and investment advisory companies. The firm noted this shift has been influenced by the multi-trillion-dollar generational wealth transfer currently underway.

Product Structure Considerations

Traditional alternative investment structures typically involved long lock-up periods and limited redemption opportunities. Semi-liquid evergreen funds aim to offer more frequent liquidity windows—often quarterly or monthly—while maintaining exposure to underlying illiquid assets.

The tension between providing liquidity and investing in illiquid assets represents a fundamental challenge in semi-liquid fund design.

Regulatory Environment

Regulatory frameworks governing alternative access for retail investors vary by jurisdiction. In the United States, products like interval funds and tender offer funds provide structures that offer alternatives to non-accredited investors, subject to certain restrictions. In Europe, the Eltif 2.0 framework established parameters for retail-accessible alternative investment vehicles.

These regulatory structures attempt to balance investor access with protections appropriate for less liquid, potentially higher-risk strategies. Ongoing regulatory evolution will influence how alternative asset managers structure and distribute products to wealth management channels.

Wealth Management & Alternative Investment Advisory

The growing allocation to alternative investments in private wealth portfolios creates complex considerations around suitability assessment, portfolio construction, tax implications, and ongoing monitoring. Wiss’s Wealth Management and Family Office Advisory Services help clients navigate alternative investment opportunities, evaluate fund structures, assess tax considerations, and implement governance frameworks for private market allocations.

Contact Wiss Wealth Advisory to discuss investment evaluation and portfolio strategy.

Editorial Note: This article provides general information about alternative investment industry trends and product structures. It does not constitute investment advice, recommendations regarding specific investments, or suitability determinations for any investor. Alternative investments involve risks including loss of principal, illiquidity, and complex valuation methodologies. Investors should consult qualified financial advisors regarding investment decisions appropriate to their specific circumstances. Wiss & Company LLP provides accounting, tax, and advisory services to family offices, high-net-worth individuals, and financial advisory firms.