Alternatives market expansion via individual investors
The next major growth wave for alternative asset managers will come from retail and high-net-worth individual channels, which remain largely untapped.
The argument
The speaker argued that while institutional allocations to alternatives are expected to double over the next decade, the individual investor market (including retail, high-net-worth, annuities, and 401ks) is actually larger than the institutional market but has almost zero penetration from alternatives.
The thesis, stress-tested
✓ What validates it
- ✓Launch of new retail-targeted alternative investment vehicles
- ✓Inflows from retail and high-net-worth channels making up a larger percentage of total AUM
▸ Risks discussed
- ▸Regulatory or structural hurdles in delivering complex alternative products to retail investors
Hear it yourself
"That's your four zero one k and retiree market here in The United States. That market is actually bigger. The individual market is actually bigger than the institutional market today, and it has almost zero penetrations from alternatives."
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