Wealth managers and private banks are reporting increased client interest in alternative assets as investors seek diversification amid ongoing market uncertainty. Recent coverage by Bloomberg highlights a growing appetite for private credit, infrastructure, and real assets as traditional portfolios face pressure from volatility in equities and bonds.
According to industry executives, high-net-worth individuals are reassessing risk exposure following sharp market swings and shifting interest rate expectations. Alternative investments, which often offer lower correlation with public markets, are being positioned as tools for enhancing portfolio resilience rather than chasing short-term returns.
Private credit has emerged as a particularly attractive segment, benefiting from higher interest rates and tighter bank lending standards. Asset managers report strong inflows into funds offering exposure to corporate lending outside traditional banking channels. However, analysts caution that illiquidity and credit risk remain key considerations, especially if economic conditions weaken.
Infrastructure investments are also gaining attention, driven by long-term themes such as energy transition, digital connectivity, and urban development. These assets are often viewed as offering stable cash flows and inflation protection, making them appealing during periods of economic uncertainty.
Despite growing interest, wealth advisers emphasise the importance of selectivity and due diligence. Alternative assets typically involve longer investment horizons and complex risk profiles. As such, they are increasingly being incorporated as strategic allocations rather than tactical trades.
Looking ahead, industry observers expect demand for alternatives to remain strong as investors navigate an environment characterised by slower growth, persistent inflation risks, and evolving monetary policy. The shift reflects a broader reassessment of how wealth is preserved and grown in a more complex financial landscape.
