In the evolving “post-60/40” investing landscape, alternatives often come with higher fees and reduced liquidity, but investors tolerate these trade-offs for the potential of higher returns and skilled management. Wealth managers stress that allocations should reflect an investor’s liquidity needs, risk tolerance, and experience, with recommendations ranging from a cautious 10% to as high as 50% for those with no short-term cash flow requirements. 

While some, like Marina Wealth’s Noah Damsky, seek niche managers with unique strategies, others—such as International Assets Advisory’s Ed Cofrancesco—favor straightforward private real estate projects for their simplicity and transparency. 

Ballast Rock Private Wealth’s Andrew Mescon highlights private credit and private equity secondaries as compelling opportunities, citing diversification, downside protection, and discounts to net asset value as advantages. Managers also note the growing role of evergreen fund structures, which can ease liquidity constraints and broaden access to these asset classes. 

Finsum: Ultimately, successful alternative investing hinges on aligning product complexity, fees, and liquidity with each investor’s unique financial situation.