Market Intelligence & Alternatives
Alternatives Allocation Guide for Private Client Portfolios
Where private credit, private equity, and real assets fit in a diversified wealth strategy.
Strategic Takeaway
Alternatives can improve diversification, but only when liquidity, fees, and manager selection are explicitly controlled.
Set a Liquidity Budget First
Alternatives sizing should be constrained by household cash-flow obligations and emergency reserve targets.
Use a Portfolio Role Framework
Assign each alternative sleeve a role: income enhancement, inflation hedge, return premium, or diversification.
Institutionalize Manager Due Diligence
Evaluate strategy edge, alignment, portfolio construction process, and operational controls before allocation.
Frequently Asked Questions
What portfolio size typically supports alternatives?
There is no fixed minimum, but larger and longer-horizon portfolios generally have more flexibility to absorb lockups.
Are alternatives always less correlated?
Not always. Correlation can rise during stress, so scenario analysis remains essential.
How often should alternatives be reviewed?
Quarterly for operations and exposures, with deeper annual strategy and manager reviews.