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ADISA's 2025 Market Prediction Survey Highlights

In the latest revelation from the Alternative Direct Investment Securities Association (ADISA), a new survey has unveiled promising insights into the trends of the alternative investments sector for 2025. ADISA, representing a broad spectrum of investment professionals, conducted this survey among over 100 broker-dealers, registered investment advisory (RIA) firms, and family offices, ranging from small to large scale operations.

According to Greg Mausz, a member of the ADISA board and co-author of the survey, the results serve as a vital benchmarking tool for financial firms. They provide insights into how these firms measure up against others in the market and help sponsors gain clarity on the expectations of brokers, RIAs, and family offices for the remainder of the year.

Key Survey Findings

The survey's results point to a significant expansion in the variety of alternative investment options available to financial firms, which encompass a diverse range of sponsors and asset classes. This expansion allows financial advisors to tailor alternative allocations more effectively to meet their clients' investment goals.

Some notable highlights from the survey include:

• - A pronounced emphasis among financial professionals on investments that yield higher returns, along with those offering tax benefits.
• - Predictions indicate that 1031 exchanges will dominate in year-over-year growth, reflecting a potential decrease in interest rates.
• - Notable growing interest in oil and gas income funds, as investors are seeking to diversify beyond conventional choices like real estate and private credit.
• - A boost in the interest and traction of various private equity offerings among retail investors, a trend expected to persist into 2025.

In 2024, firms reported a remarkable increase of over 57% in revenue stemming from alternative investments compared to the previous year. Looking ahead, about 75% of the firms surveyed anticipate a general increase in revenue for 2025, including significant growth from allocations in alternative investments. Furthermore, an impressive 87% of respondents have confirmed their use of the Rule 506(c) exemption in their offerings.

Evolution of Investment Strategies

The survey also revealed that pure RIA firms have grown more common as of 2025, while hybrid broker-dealer and RIA firms remain the most prevalent. Participants exhibited strong interest in having ADISA delve into cryptocurrency topics at future conferences.

"Our findings underscore a maturing environment in the alternative investment space, with firms embracing a degree of complexity seen through their widespread adoption of Rule 506(c). Additionally, there is a notable increase in investments towards traditional real estate programs, private credit, and a burgeoning interest in digital assets and AI technologies," explained John Harrison, Executive Director of ADISA.

In comparative analysis with ADISA's 2019 survey, Section 1031 exchange offerings have soared in popularity, taking the lead over real estate-related Reg D funds, which now sit in a secondary position, followed by private equity and private credit Reg D funds. While various types of funds, including interval/tender funds and opportunity zone funds, have gained traction relative to their popularity in 2019, it's evident that alternative investments are progressively solidifying their presence among RIAs.

Although interval/tender funds, non-traded NAV REITs, and business development companies are highly favored in fee-based accounts for their liquidity and regular valuations, certain other investment types like private real estate and 1031 exchanges have yet to gain a foothold in such platforms.

The Role of Artificial Intelligence

In an added section dedicated to current trends, the survey discussed the nascent integration of artificial intelligence (AI) within financial advisory practices, indicating that while many firms have only begun to adopt AI sporadically, its application is mostly noted in marketing and administrative capacities.

Reflecting the keen interest in AI, the session titled “Artificial Intelligence: A Super-Agent in the Workplace” emerged as the top-rated session during ADISA's Spring Conference. In light of this reception, ADISA has announced plans to continue discussions on AI at its upcoming Annual Conference and Trade Show in Las Vegas this autumn.

Conclusion

ADISA continues to serve as a pivotal association in the alternative investment sector, pushing the envelope on education and resources to ensure that members can navigate an increasingly sophisticated market. As the industry evolves, the insights gathered from the 2025 survey signify a crucial leap towards comprehensive understanding and strategic alignment in the alternative investments field.