A survey conducted by Brookfield Asset Management through its Alts Institute, in partnership with independent research firm CoreData, indicates that financial advisors in the U.S. and Canada are rapidly deepening their expertise in alternative investments. The proportion of advisors reporting comprehensive knowledge of the asset class has nearly doubled to 32% in 2025, up from approximately 17% in the prior year. The study polled over 600 advisors with an average practice AUM of $657 million, along with 60 gatekeepers responsible for evaluating alternative managers and products across the U.S., Canada, the U.K., and Switzerland.
The research identifies a growing cohort it terms 'Power Users'—advisors who score highly on Brookfield's alternatives index and actively use a broad range of alternative vehicles and products. Globally, this group has expanded to 40% of advisors, compared with 26% in North America in 2024. These Power Users allocate an average of 22% of client portfolios to alternative investments, signaling a shift from experimental allocation to strategic integration.
Client conversations have evolved significantly, with 71% of U.S. and Canadian advisors reporting that discussions now focus on portfolio goals and how alternatives can help achieve specific objectives, rather than foundational education. Additionally, 73% of advisors deploy alternatives as much for risk management as for return generation, reflecting a more sophisticated understanding of the asset class's dual role. This trend aligns with broader market concerns: a recent Allianz survey found that 62% of Americans fear a recession, and 58% seek more portfolio protection, underscoring the relevance of alternatives for downside mitigation.
Liquidity considerations are increasingly central to implementation. The survey found that 82% of respondents say understanding client liquidity needs has helped them deploy alternatives more effectively. Looking ahead, 57% of advisors plan to increase their use of evergreen funds over the next two years, while 68% identify self-funding or reinvesting proceeds as the most practical way to expand client allocations to the asset class. This preference for evergreen structures suggests a move away from traditional closed-end funds toward more flexible, open-ended vehicles.
Education remains a key driver of adoption, with 66% of advisors citing educational materials as central to expanding their use of alternatives. Expertise is also gaining commercial weight: 77% of advisors describe alternatives knowledge as a must-have capability, and 73% say it represents a meaningful driver of practice growth. Portfolio construction support is valued by 72% of respondents as among the most valuable services an alternatives partner can offer. These findings echo insights from the AssetMark study on operational discipline driving advisory firm growth, where expertise and support infrastructure are key differentiators.
John Sweeney, chief executive of Brookfield's private wealth business, commented: 'We are seeing a significant shift in how advisors approach alternatives. As familiarity with the asset class has grown, the conversation has evolved from understanding what alternatives are to understanding how they can be used within a portfolio to help achieve specific client objectives. That evolution is helping advisors build deeper expertise, integrate alternatives more thoughtfully into portfolios and ultimately deliver better outcomes for clients.'
The survey also highlights that alternatives knowledge is becoming a competitive necessity. With 77% of advisors viewing it as a must-have capability, firms that fail to develop internal expertise risk losing ground. This is particularly relevant as ultra-high-net-worth clients demand credit, planning, and investment depth, not concierge add-ons, further emphasizing the need for sophisticated alternative strategies.
