According to InvestmentNews, financial advisors are increasingly focusing on private equity funds, both public and private, as alternative investments gain traction in the retail market. Traditionally reserved for institutional investors, private equity and leveraged buyout funds now are attracting attention from retail investors, partly due to high-profile moves like the NFL allowing private equity managers to invest in teams.

The growing interest among financial advisors is evident in the capital raised for private equity funds. According to Robert A. Stanger & Co. Inc., private placement investments, which include private equity and infrastructure funds, reached $11.3 billion in the first seven months of this year, surpassing the $10 billion raised in the entire year of 2023. Notable examples include the Blackstone Private Equity Strategies Fund and the KKR Private Equity Fund, also known as K-PRIME.

InvestmentNews also reports that nontraded business development company (BDC) fundraising has surged by nearly 121 percent through July compared to the same period in 2023, while nontraded REIT fundraising has declined by 59 percent. Despite the shifts in specific sectors, the alternative investment space continues to see robust fundraising across various categories, including nontraded BDCs, interval funds, and private placements.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.