Eric Satz is CEO and Founder of Alto.
What are your expectations for 2024?
In 2024, I anticipate private funds will attract a greater amount of capital from everyday retail investors than has been raised from this population in the preceding decade. Additionally, given the rising popularity of alternative assets, financial advisors will play an important role in the ongoing democratization of the alternative asset sector. They will be the gatekeepers and voices of reason as they help clients explore asset classes that were once considered exclusive to the wealthy.
This shift is influenced by the growing popularity of alternative assets. With traditional investment options facing increased market volatility and uncertainties, retail investors are increasingly attracted to alternative asset classes for potential diversification and higher returns. In this changing landscape, financial advisors play a crucial role in guiding investors through the complexities of alternative assets.
What trends are getting underway that people may not know about but will be important?
In 2024, new retail credit models will emerge to fill the void created by a tighter traditional lending environment. This change aligns with ongoing efforts to consolidate platforms in various industries, aiming to achieve larger customer bases, increased revenue, and cost savings. Traditional broker-dealers and crypto exchanges will see blurred lines. Additionally, RIAs will redefine portfolio construction, expanding diversification to include public and private equity and public and private credit.
What industry trends have been prominent but are now fading (or will soon fade)?
As investors and financial advisors have become more educated on alternative investments in recent years, we have seen a decline in the demand for traditional investing methods such as the 60/40 mix. If the market continues down a volatile path, investors will continue to veer away from stocks and bonds, and become more open-minded to what alternative assets have to offer, such as portfolio diversification, higher yields, and a greater chance of achieving long-term financial stability.