ADISA’s 2025 Market Prediction Survey Results Show Major Surge in Revenue from Alternative Investments & Shift to 506(c) Offerings
.May 22, 2025
INDIANAPOLIS, May 22, 2025 /PRNewswire/ — ADISA, the nation’s largest trade association for the alternative investments industry, announced today the results of its 2025 market prediction survey. The association conducted the 2025 survey with the participation of more than 100 broker-dealers, registered investment advisory (RIA) firms and family offices ranging in size from 50 to over 1,000 advisors.
ADISA
“These results provide financial firms with valuable insights into how they compare to their peers, while sponsors gain a broader understanding of what broker-dealers, RIAs and family offices are projecting for the remainder of 2025,” said ADISA Board Member and co-author of the survey Greg Mausz.
Key findings from the survey indicate that:
Financial firms have expanded their alternative investments options by quantity, sponsor and asset class. Overall, this gives financial professionals more choices in customizing alternative allocations to best suit their client investment objectives.
Financial professionals continue to focus on investments that produce higher yields and those that provide tax advantages.
1031 exchanges are predicted to lead in year-over-year growth, which is in line with the potentially lower moves in interest rates.
Oil and gas income funds are drawing increased interest as investors look to further diversify beyond real estate and private credit.
All types of private equity are beginning to gain traction with retail investors, and this trend is anticipated to continue in 2025.
Revenue generated from alternative investments at the responding firms dramatically increased in 2024, jumping more than 57% compared to 2023.
75% of firms anticipate increased overall revenue in 2025, including increasing revenue from alternative investments allocations.
87% of responding firms reported using the Rule 506(c) exemption.
The majority of respondents were interested in ADISA covering cryptocurrency at future conferences.
“Our 2025 market prediction survey results reflect a maturing alternative investments space where firms are embracing complexity, seen in the widespread adoption of Rule 506(c), increased allocation to traditional real estate programs and private credit while growing interest in digital assets and AI,” said ADISA Executive Director John Harrison. “As these trends take hold, ADISA remains focused on delivering the education and resources our members need to make informed, forward-looking decisions in an increasingly sophisticated market.”
Compared to ADISA’s 2019 survey, Section 1031 exchange offerings are now the most popular, pushing real estate-related Reg D funds to second place. These are followed by private equity Reg D funds (including venture capital) and private credit Reg D funds. While interval/tender funds, non-traded REITs, and opportunity zone funds had similar popularity levels on average in 2025, most became more popular than in 2019. Alternative investments continue their growth with RIAs and in fee-based accounts. Still, interval/tender funds, non-traded NAV REITs and business development companies are the most commonly allowed in fee-based platforms because of their liquidity and regular valuations. Meanwhile, private real estate, oil and gas, 1031 exchange offerings, and opportunity zone funds have not gained traction in fee-based accounts.
Expanding beyond the traditional forward-looking purpose of the survey, results from a new section about current trends revealed that while the adoption of artificial intelligence (AI) by financial advisory firms remains in its early stages, its primary applications are concentrated in marketing, administration, and sales. Many firms report only occasional use of AI, underscoring the nascent phase of integration across the industry. Reflecting the strong interest in the topic, the session “Artificial Intelligence: A Super-Agent in the Workplace” was the highest-rated breakout session at ADISA’s 2025 Spring Conference. Building on this momentum, ADISA plans to host a follow-up session during its 2025 Annual Conference & Trade Show in Las Vegas this fall.
ABOUT ADISA The Alternative & Direct Investment Securities Association is the nation’s largest trade association representing the non‐traded alternative investment space. ADISA’s members are typically involved in non-traded real estate investment trusts, business development companies, master limited partnerships and private and public funds (LPs/LLCs), 1031 exchange programs (DSTs/TICs), energy and oil and gas interests, equipment leasing programs, or other alternative and direct investment offerings. The association was founded in 2003 and has approximately 5,000 members who are key decision makers, representing more than 220,000 professionals throughout the nation – including sponsor members who have raised in excess of $200 billion in equity and serve more than 1 million investors.
