Wayne Gretzky once said, “I skate to where the puck is going, not where it has been.” The same mindset now applies to the world of investing. As global markets navigate inflation, rising interest rates, and public equity volatility, a growing segment of investors—both institutional and individual—are heading toward one direction: alternative investments.
And unlike a decade ago, retail investors are no longer left on the sidelines.
A $30 Trillion Opportunity That’s Just Getting Started
The alternatives market has grown exponentially in recent years. According to Preqin, global alternative assets under management are expected to hit $29.2 trillion by 2029, nearly doubling from $16.8 trillion in 2023. The momentum isn’t slowing—by 2030, the market could top $30 trillion.
Driving this growth are four core asset classes:
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Private equity
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Private credit
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Infrastructure
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Real estate
Each offers investors something that public markets increasingly struggle to deliver: potential long-term, risk-adjusted returns that are insulated from daily volatility.
Institutions Went All In
Institutional investors—pensions, endowments, and sovereign wealth funds—have long understood the value of alternatives:
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Their average portfolio allocation to alts is 25–27%.
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They mostly likely view alternatives as essential for diversification, inflation protection, and return optimization.
A 2023 survey by Mercer revealed that 52% of institutional investors plan to increase their allocation to private markets over the next three years. In comparison, retail investors hold just a fraction—usually less than 5%—in alternatives.
The takeaway? The professionals are already there.
Retail Is Catching Up
Until recently, the average investor faced steep barriers: six-figure minimums, multi-year lockups, opaque deal structures, and regulatory hurdles.
But things are changing.
According to a recent CAIS/Ipsos report:
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48% of U.S. investors are now interested in alternatives.
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25% are actively considering them.
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This represents over $1.3 trillion in potential capital.
The acceleration of fintech, API-connected custodians, and compliance automation is making it possible for non-institutional investors to participate with as little as a few hundred dollars—not a quarter-million.
Why Alternatives May Matter Now More Than Ever
Let’s break down the appeal:
1. Diversification
Alternatives often have low correlation with public equities and bonds. That means when markets wobble, alts like real estate or private credit may hold steady or even rise.
2. Inflation Hedging
Real assets like real estate and infrastructure have historically offered inflation protection due to their ability to pass rising costs onto tenants or users.
3. Higher Yield Potential
Private credit, direct real estate, and private equity have outperformed traditional markets in many 10–20 year return cycles.
4. True Long-Term Investing
Because alternatives aren’t marked to market daily, they reward patience and aren’t subject to emotional trading.
The Fintech Shift: Platforms Like CalTier Lead the Way
CalTier was founded with a mission to bring alternative investments—particularly multifamily real estate—to everyone.
The numbers so far (at the time of publication):
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32,000+ platform users
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~3,000 active investors
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Over $14 million raised
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Average investment of $4,600
What makes the platform different:
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Vertically integrated: CalTier sources, manages, and operates its real estate either directly, as Co-GP or participating investments, unlike marketplaces that merely list third-party deals.
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Auto-invest features: 12% of investors are enrolled in monthly contributions.
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70% reinvestment rate: A strong indicator of trust and user satisfaction.
And the road ahead includes:
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Launching CalTier REIT I, focused on stabilized, income-producing assets
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Offering retirement account investments via Self Directed IRAs through our partners such as Alto IRA.
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Expanding into other alternative classes
Big Players Are Following the Same Playbook
This isn’t just a startup trend. Wall Street’s giants are repositioning toward alternatives:
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BlackRock is acquiring Preqin (a leading alternatives data platform) for $3.2 billion, aiming to grow its private markets revenue from 15% to over 30%.
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Apollo, KKR, and State Street are launching private credit ETFs, seeking to unlock the $1.7 trillion private debt market for retail investors.
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Morgan Stanley, Fidelity, and Charles Schwab are building partnerships with tech firms like iCapital to scale access for financial advisors and high-net-worth individuals.
This convergence of capital, technology, and distribution is reshaping the investing landscape at every level.
Long-Term Thinking: This Is Just the Beginning
It took:
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Amazon 9 years to become profitable
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Tesla 7 years
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Facebook 5 years
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Spotify 16 years
Building platforms that are regulatory-compliant, technology-forward, and trusted by thousands doesn’t happen overnight. But as with these iconic companies, the long game is what builds real value.
CalTier—and platforms like it—aren’t just responding to a market trend. They’re helping shape the next era of investor access.
Sources
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Preqin Global Alternatives 2024 Outlook
https://www.preqin.com/insights/global-reports/2024-global-alternatives-report -
Mercer: 2023 Global Institutional Investor Survey
https://www.mercer.com/en-us/insights/investments/2023-global-investor-survey/ -
CAIS/Ipsos: Alternative Investing in the Retail Market
https://www.caisgroup.com/articles/2024-cais-ipsos-retail-investor-survey -
Financial Times: BlackRock’s Strategic Push into Alternatives
https://www.ft.com/content/c97d4df0-1f39-4e44-bb6f-4e73e404923f -
Wall Street Journal: Private Credit Goes Mainstream
https://www.wsj.com/finance/investing/wall-street-races-to-bring-private-credit-to-the-masses-8a25b624 -
MarketWatch: BlackRock Acquires Preqin
https://www.marketwatch.com/story/blackrock-buying-prequin-for-3-2-billion-as-private-markets-interest-surges-5b7d1310 -
McKinsey Global Private Markets Review 2024
https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/mckinsey-global-private-markets-review-2024
