At the ADISA 2025 Spring Conference in Los Angeles, a panel of registered investment adviser (RIA) executives shared a consistent message: successful integration of alternative investments hinges on thoughtful customization, robust due diligence, and a strong foundation of client and adviser education, according to DI Wire.
Rizwan Ibrahim of Accretive Wealth Management moderated the session, which featured Sylvia Kwan (Ellevest), Sean O'Toole (1776 Wealth), and Ayako Yoshioka (Wealth Enhancement Group). According to DI Wire, each speaker brought a unique lens to the conversation, but all emphasized that alternatives—ranging from private credit to real estate strategies—serve primarily as diversifiers.
Kwan emphasized a goals-based strategy when determining portfolio composition. She outlined a process that weighs liquidity needs, cash flow, and tax considerations. For example, Ellevest uses private credit strategies that remain independent of Federal Reserve actions, allowing for a more stable income stream.
Other panelists addressed structural considerations—such as fund liquidity, accreditation thresholds, and tax documentation. According to DI Wire, panelists noted that clients with lower assets under management (AUM) may feel uneasy with K-1s or capital calls, while higher-AUM clients are generally more comfortable with long-term lockups.
While the broader democratization of alternatives offers opportunity, the panelists urged caution. Kwan emphasized the value of closed-end, drawdown structures that reinforce long-term investing discipline. She warned against fostering a mindset where clients expect quarterly liquidity or immediate exits based on market noise.
O'Toole warned RIAs to remain skeptical of products engineered for liquidity that dilute the true benefits of illiquid investments. "Wall Street will always create what people will buy," he said. "But that doesn't mean they're creating what actually helps the client."
All panelists agreed that due diligence plays a critical role in portfolio construction. O'Toole said his firm relies on third-party due diligence providers like FactRight. Kwan added that Ellevest evaluates a fund manager's strategic focus, operational reliability, and ability to stick with their investment thesis over time. She emphasized the need for ongoing monitoring, especially given the long-term nature of many alternative funds.
Teaching both advisors and clients how alternatives work remains the industry's biggest hurdle. Yoshioka described it as "learning a whole new language," citing terms like "capital calls" and "drawdowns."
Kwan agreed, emphasizing the need to start with "why." She pointed to shrinking public markets as a reason private investments have become essential to long-term strategies. She also underscored the social impact of private markets, calling them a powerful tool for clients who want their capital to align with values around race, gender, and environmental change.
DI Wire reports that the panel concluded with a shared conviction: RIAs who invest the time and resources into education, strategy, and vetting can unlock real value in alternatives—for themselves and for their clients.
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