Core Insights - Major players in the wealth management space, Edward Jones and Focus Financial, are actively discussing the adoption of alternative investments during the CAIS Summit in Los Angeles [1] Edward Jones - Edward Jones is introducing alternative investment options to its 20,000 advisors, many of whom lack experience with alternatives, due to the firm's traditional client base [2] - The firm has partnered with CAIS to expand alternative options while launching Edward Jones Generations, a private client service for U.S. high-net-worth investors [2] - Chubak highlighted the challenge of varying advisor readiness, with some needing minimal tools to engage with alternatives while others require extensive education [3] - The firm is segmenting its advisors to focus on those with the greatest opportunities, rather than attempting to engage all 20,000 advisors at once [4] Focus Financial - Focus Financial's CEO, Nathanson, noted that firms within its network already cater to high-net-worth investors with significant allocations to private markets, providing insights for broader expansion into this asset class [4] - Nathanson emphasized the importance of holistic advice and adapting to market changes, stating that moving into private markets is a recognition of current realities [5] - The firm views the adoption of alternatives as a necessary evolution to remain competitive in the changing market landscape [5]

Core Insights - RIAs are lagging behind wirehouses in adopting alternative investments for clients, with significant differences in client allocations and operational support [1][3][4] RIA Client Allocations - National RIAs report that 29.9% of their clients hold alternative investments, with a weighted average allocation of 11.2%, implying that 3.35% of client assets are allocated to alternatives [2] - The broader RIA market shows an implied client allocation to alternatives at just 0.78%, significantly trailing wirehouses and broker/dealers [3] Wirehouse and Broker/Dealer Performance - Wirehouse clients have the highest implied allocation to alternatives at 3.75%, with a high average weighted allocation of 16.1% [4] - Independent broker/dealers report that 8.7% of their clients have allocations to alternatives, with an average allocation of 13.4%, surpassing the RIA segment [5] Future Expectations - Committed national RIAs expect to increase their share of clients with alternative investments to 35% by 2026, while wirehouses anticipate reaching 29% and independent broker/dealers 13% [6] - National RIAs forecast that the weighted average for client allocations to alternatives will rise to 15% [6] Operational Challenges - RIAs face hurdles in adopting alternatives due to a lack of operational support, limiting them to registered funds that offer liquidity and ease of reporting [7]