Advisor ownership of illiquid and semi-liquid private capital products is set to climb by $2 trillion over the next five years, according to new research from Cerulli, even as advisors continue to wrestle with the liquidity tradeoffs that have complicated the asset class's incursion into the mainstream.
The latest privaate markets report from Cerulli found that financial advisors currently hold $2.2 trillion in less-than-fully-liquid private capital, a figure the firm expects to expand substantially as interval fund solutions multiply and asset allocation models make private exposure easier to access.
Cerulli's data show that 93% of surveyed asset managers point to greater availability and access to alternative investments as a significant driver of industry growth over the next three years, with most also citing advisors' need to demonstrate value-add to clients and demand for income-generating investments as major forces behind the shift.
The findings track closely with other independently fielded surveys, which consistently point to alternatives moving decisively from niche to mainstream status in advisor portfolios.
Cerulli's report identifies interval funds as the vehicle of choice for advisors seeking semi-liquid exposure to private markets. Interval funds reached approximately $132 billion in assets across 147 funds by year-end 2025, up substantially from prior years as advisors increasingly adopt this structure over others. The firm noted that both interval funds and tender offer funds are growing, primarily within credit and equity-based strategies respectively, while non-traded business development company growth has moderated after a rapid rise in assets.
The independent registered investment advisor channel stands out as the primary growth engine. Ninety-three percent of polled managers report indie RIAs as presenting a top-five distribution opportunity, greater than any other channel, likely due to more streamlined access.
According to Cerulli, RIAs tend to favor interval funds because they lack the performance fees and embedded commissions common to other structures. That preference for semi-liquid access also came across in research from Brookfield Asset Management's Alts Institute, whiich found 57% are planning to increase their use of evergreen funds in the next two years. As for how they plan to expand cliients' allocations to that category, roughly two-thirds agreed self-funding or reinvestment is the best course.
Cerulli's research underscores that scaling access will depend heavily on collaboration rather than competition among industry players.
Daniil Shapiro, a director at Cerulli, said traditional asset managers are seeking differentiated capabilities that can enhance their product offerings and support more competitive value propositions, while private capital managers often lack the distribution scale and brand recognition required to penetrate retail channels beyond the ultra-high-net-worth segment.
"Working together, these firms can deliver solutions to retail investors that neither could provide as effectively on their own," Shapiro said.
Shapiro added that as capabilities are brought to market, clearly defined responsibilities and scope, including channels, wealth segments targeted, and products offered, will be critical considerations for private captal managers.
"While it’s too early to evaluate existing partnerships now, in the long term they will be defined by their execution," Shapiro said.
Cerulli's report also emphasized the increased redemption requests faced by non-traded business development companies and interval funds this year, though analysts maintained private market solutions remain at an early stage of adoption with meaningful tailwinds.
An earlier survey by CION Investments, YCharts and Compound Insights this month found 61% of advisors cited liquidity concerns as an obstacle to broader adoption, making it the single most pressing concern. The Brookfield survey, which included Canadan and US advisors, found 82% agreeing that understanding clients' liquidity needs has helped in putting alternatives to work more effectively.
Cerulli's research suggests the remedy lies partly in transparency. Forty-four percent of advisors report that greater transparency of alternative investments would drive greater allocations, building a case for providing more granular exposure data to home offices and practices. Recent disappointment among home offices during the wave of private credit redemptions came at least in part due to lack of data, according to Cerulli.
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