Advisor Alts Demand Stays Strong; Analytics Top Tech Priority

According to WealthManagement.com, iCapital's second annual Global Advisor Survey found that 89% of surveyed advisors plan to maintain or increase allocations to alternatives. The share planning increases rose to 39% in 2026 from 14% in 2025. Those planning to allocate less doubled to 11% from 5%.

The survey also showed sharp shifts in technology priorities. Risk and performance analytics tools topped the list at 51%, up from 43% a year earlier. Automated subscription and redemption processing fell to 26% from 41%, custodian and fund administrator connectivity dropped to 28% from 41%, and CRM integration declined to 30% from 42%.

iCapital President Gary Gallagher said in a written response that advisors remain committed to the asset class, but the conversation has shifted from whether to use alts to how to implement them more effectively. He said the market is moving beyond adoption and focusing on managing the full lifecycle of alternative investments at scale. The survey also found difficulty assessing liquidity and risk was the top challenge, cited by 59%.

This is a maturation signal for the alts channel. As adoption becomes mainstream, the competitive battleground moves from onboarding plumbing to portfolio analytics. RIAs evaluating alts platforms should weigh their risk and performance reporting capabilities heavily, since that is what advisors now say they need most.

The 11% cutter cohort is worth watching. It may reflect lingering pain in private credit or investors rebalancing. But with 89% still holding or increasing, the secular trend remains intact. The shift also puts pressure on platforms like iCapital and CAIS to keep investing in analytics, not just connectivity.

The drop in demand for automated subscription processing and custodian connectivity does not mean those features are no longer important. More likely, they have become table stakes. Advisors expect seamless onboarding now; their differentiating need is understanding how alts perform and behave inside a client's total portfolio.

The increase in advisors planning to cut allocations is a reminder that alts are not immune to scrutiny. But this survey suggests the froth is coming off, not the foundation. For RIA principals, the practical takeaway: if your alts platform cannot give you strong risk and performance analytics, that will become a competitive disadvantage.

Expect alts platforms to lean into analytics and portfolio-monitoring tools in the next product cycles. Watch whether the 11% cutter cohort grows if private credit stress persists.