A category the researchers call “Power Users,” defined as advisors scoring highly on Brookfield’s alternatives index with broad current usage across a range of vehicles and products, has grown to 40% globally from 26% in North America in 2024. Those advisors allocate an average of 22% of client portfolios to alternatives.
Client conversations
Among US and Canadian advisors, 71% said client conversations have moved away from foundational education toward discussions about portfolio goals and how alternatives can contribute to achieving them. Meanwhile, 73% said they now deploy alternatives as much for risk management as for return generation.
Liquidity considerations are playing a growing role in implementation, with 82% of respondents saying that understanding client liquidity needs has helped them put alternatives to work more effectively.
Looking ahead, 57% said they plan to increase their use of evergreen funds over the next two years, and 68% identified self-funding or reinvesting proceeds as the most practical way to expand clients’ allocations to the asset class.
Education remains a significant factor in driving adoption, with 66% of advisors saying that educational materials have been central to expanding their use of alternatives.