In an article for AdvisorHub, Steven Brod of Crystal Capital Partners discussed how alternative investing options are increasingly important when it comes to financial advisor recruiting. He believes that having a robust alternative investing platform is essential for small and mid-size wealth management firms to successfully recruit advisors.
Alternative investments have exploded in popularity following the poor performance of stocks and bonds in 2022. These investments typically provide increased diversification and the potential for higher returns.
An effective alt platform will give advisors access to all sorts of strategies and the requisite technology to manage these investments. Interest in alternative investing is especially high among the younger demographic so not having a sufficient platform could repel advisors with such clients.
Some examples of offerings include hedge funds, private equity, private credit, SPVs, and venture capital. Overall, the platform should offer a broad variety of investing strategies and tools to evaluate these options from a quantitative and qualitative perspective. The final step is to ensure that there is an alignment of interest between the platform, advisor, and clients.
Finsum: Alternative investing is exploding especially among younger, entrepreneurial advisors. Here is what to look for in a good alt investing platform.
- advisors
- clients
- wealth management
- client anxiety
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