One in four DC plan advisors are likely to recommend alternative investments, following the DOL’s decision to reverse its stance. National advisors and those with $50M+ AUM show the strongest interest in alternatives. Advisors are turning to alternatives for diversification, with private equity being the most favored option among advisors.

Advisors show interest in private equity, private credit, private real estate, and venture capital as alternative investments. The growing demand for alternatives will depend on factors like lower fees, client requests, and increased liquidity. DC advisors are expected to receive more requests for alternative investment options in the future.

The market is adjusting to the use of alternatives in workplace plans post-DOL’s decision. Advisor interest aligns with participant curiosity, indicating a growing trend in alternative investments. Firms that offer alternative options aligned with advisors’ priorities will benefit the most from this momentum.

The study from Escalent provides insights into the preferences of financial advisors regarding alternative investments within DC plans. Escalent is a data analytics and advisory firm specializing in industries facing disruption and business transformation. For more information about the study, contact Alexia Garcia at [email protected].

Read more at GlobeNewswire: Alternatives Gain Traction Among DC Plan Advisors Following