Cetera is developing several alternative investments allocation models designed specifically for advisers who want to provide alternative investments, such as private credit, private equity and private real estate, to their accredited-investor clients. The company says this will be an efficient, scalable way to offer the benefits of alternative investments – including diversification and the potential for enhanced returns.
“At Cetera, we empower advisers to deliver institutional-quality exposure to alternative investments with confidence and ease. We see Cetera as the first independent broker-dealer to introduce this kind of alternatives model and we believe it will create significant value for our advisers,” said Christian Mitchell, President of Cetera Solutions in a statement.
The first model portfolio, now available, is the Cetera Blended Alternatives Model – Moderate, which includes six alternative funds with exposure to private equity, private credit, and private real estate investments. Cetera’s Due Diligence and Cetera Investment Management’s research teams researched and vetted the portfolio in partnership with iCapital. Advisers can use this portfolio with accredited-investor clients.
By offering a combination of traditional and alternative investments, Cetera advisers have a holistic and streamlined approach to adding non-correlated assets, which can help them build better-diversified portfolios for their accredited-investor clients, the company said.
“Advisers are seeking a portfolio level solution to incorporate alternative investments in their overall portfolio. By embedding alternatives into familiar portfolio construction frameworks, we empower advisers to deliver diversified, outcome-oriented solutions without compromising on efficiency or customization. This is about simplifying access to alternatives and enabling scale,” said Kunal Shah, Managing Director and Head of Private Markets Research and Model Portfolios at iCapital, in a statement.
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