Key Takeaways
- • A Deloitte survey of about 1,000 retail investors found as many as three in four are open to investing in alternative asset classes such as private equity, venture capital, private credit, and asset-backed finance.
- • Roughly 30% of the open respondents said they would consider an alternative asset if recommended by an investment adviser, signaling a large group of persuadable potential investors.
- • Retail preferences clash with product structures: respondents rank illiquidity risk among their top concerns, yet a larger quarterly liquidation cap made more of them unwilling to invest, suggesting limited understanding of how caps work.
- • 80% of retail investors have an investment horizon under five years for non-retirement assets, and the median single non-retirement investment is $1,000, far shorter and smaller than the long-term, high-minimum model typical of institutional alternatives.
- • Deloitte recommends advisers and managers focus on investor education, alternate product structures, and alliances to capture the expanding retail opportunity.
Summary
A Deloitte Center for Regulatory Strategy article published October 13, 2026, by Jeffrey A. Levi and Meghan Burns examines retail investor demand for alternative assets. Based on a Deloitte survey of about 1,000 retail investors, as many as three in four respondents are open to investing in private equity, venture capital, private credit, and asset-backed finance. The authors note that policy changes are expanding access to these asset classes for everyday investors, which has been pushed by some investment managers and policymakers.
Interest is strongest among younger investors. Respondents aged 25 to 44 are overrepresented among the most interested investors, while those over 55 are underrepresented. Among interested investors, the median target allocation of liquid assets to alternatives is 30% for those aged 18 to 34 and 25% for those aged 35 to 54, compared with 15% for those over 65. Median target allocations of retirement savings are lower, at 20% for respondents aged 35 to 64.
The survey identifies a significant gap between interest and knowledge. Illiquidity risk ranks among respondents' top concerns, yet their tolerance for quarterly liquidation caps suggests confusion: the share who would not invest rose as the cap grew larger, even though larger caps permit more liquidity. Investors' self-rated knowledge was strongly correlated with their interest, and Deloitte notes that investors do not necessarily perceive the gap.
Structuring products poses challenges. High-net-worth and institutional investors have traditionally accepted longer lock-ups in exchange for higher return potential, whereas retail products are typically more liquid and lack investment minimums. Deloitte's survey shows 80% of retail investors have a typical horizon under five years for non-retirement investments, and the median single non-retirement investment is $1,000, smaller still for those under 35. Younger investors, though more comfortable with liquidity restrictions than those near retirement, tend to hold more in brokerage accounts than retirement accounts.
Deloitte concludes that advisers and asset managers must recognize how retail needs differ from those of institutional and high-net-worth investors. Recommended responses include educating target investors, considering alternate product structures, and forming alliances to reach new investors, steps the firm says may position firms to benefit from the democratization of these assets.
Interest is strongest among younger investors. Respondents aged 25 to 44 are overrepresented among the most interested investors, while those over 55 are underrepresented. Among interested investors, the median target allocation of liquid assets to alternatives is 30% for those aged 18 to 34 and 25% for those aged 35 to 54, compared with 15% for those over 65. Median target allocations of retirement savings are lower, at 20% for respondents aged 35 to 64.
The survey identifies a significant gap between interest and knowledge. Illiquidity risk ranks among respondents' top concerns, yet their tolerance for quarterly liquidation caps suggests confusion: the share who would not invest rose as the cap grew larger, even though larger caps permit more liquidity. Investors' self-rated knowledge was strongly correlated with their interest, and Deloitte notes that investors do not necessarily perceive the gap.
Structuring products poses challenges. High-net-worth and institutional investors have traditionally accepted longer lock-ups in exchange for higher return potential, whereas retail products are typically more liquid and lack investment minimums. Deloitte's survey shows 80% of retail investors have a typical horizon under five years for non-retirement investments, and the median single non-retirement investment is $1,000, smaller still for those under 35. Younger investors, though more comfortable with liquidity restrictions than those near retirement, tend to hold more in brokerage accounts than retirement accounts.
Deloitte concludes that advisers and asset managers must recognize how retail needs differ from those of institutional and high-net-worth investors. Recommended responses include educating target investors, considering alternate product structures, and forming alliances to reach new investors, steps the firm says may position firms to benefit from the democratization of these assets.
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