Advisors Expanded Private Market Investment Offerings
Financial professionals are increasingly integrating private assets into client portfolios despite ongoing transparency concerns.
Updated on Oct. 13, 2026 in Financial Planning
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Would you choose to include complex private market investments in your personal retirement portfolio?
Approximately 40% of financial advisors have begun offering private-market investments to clients. Firms like Morgan Stanley have recently introduced model portfolios that feature dedicated allocations to these alternative assets.
Why it matters
The shift toward private assets is driven by institutional efforts to package complex investments into familiar structures. However, many advisors remain cautious due to questions regarding fees, liquidity, and the transparency of underlying holdings.
While 40% of advisors now offer private assets, 46% cite concerns over fees, 40% flag liquidity issues, and 35% worry about transparency. Morgan Stanley has launched nine model portfolios with private asset allocations ranging from 8% to 12%.
The players
Morgan Stanley
Morgan Stanley is a multinational investment bank and financial services company that provides a wide range of investment banking, securities, and wealth management services.
Morningstar
Morningstar is a financial services firm known for its investment research, portfolio management tools, and data analysis for financial professionals and individual investors.
The details
Asset managers are increasingly packaging private equity, credit, real estate, and infrastructure into standardized model portfolios for broader distribution. While Morningstar prepares to launch its own alternative portfolio suite, advisors continue to grapple with the complexity of these products.
Timeline
In 2022, alternative investments outperformed equities and bonds in portfolios.
In 2025, 68% of advisors felt comfortable explaining private investments.
In October 2026, Morgan Stanley rolled out nine model portfolios.
Market Dynamics
This move toward broader alternative accessibility follows the pattern set by the 2022 outperformance of alternative investments in client portfolios. It marks a significant shift as firms transition private assets from exclusive institutional products into mass-market model portfolios.
Retail investors may see private equity, real estate, and infrastructure options added to their recommended model portfolios. However, these additions bring new considerations regarding potential fee structures and the time horizon required for liquidity.
The takeaway
Investors should carefully review the fee transparency and liquidity terms before adding private assets to their portfolios. Financial professionals suggest that maintaining a balanced perspective on these emerging products is essential for long-term wealth management.
What happens next
Morningstar is expected to launch its new suite of alternative model portfolios this month.
Further reading
For more context on navigating new investment tools, explore the Financial Planning section.
Live Poll
Would you choose to include complex private market investments in your personal retirement portfolio?
