Client segmentation

Retail channel

In 2024, private wealth was rising. In 2025, it’s dominant.

Alternative fund managers are pivoting toward wealthy retail investors, reshaping distribution and product design. Mass market retail reach remains more limited.

31%

of managers cite private wealth as top priority

58%

prioritize investor base diversification

37%

expect increased engagement with HNW/UHNW channels

Only 12% of alternative fund managers focus on the mass market (households under US$250K in investable assets), which reflects a segment that is under adopted and not a primary target.

The shift reflects a strategic pivot toward retail from traditional institutional channels.

Client segmentation

Retail channel

Strategic implications

Alternative fund managers:

Build scalable onboarding and operations for the retail channel
Design products that meet retail channel needs.
Rethink distribution and service models for private wealth channels.
Treat retail as a long-term digital transformation opportunity.

Institutional investors:

Prepare for diluted influence and increased competition for manager attention.
Push for top tier service, education and distribution coverage.

Allocation ranges across investor types
What is your current investor profile?

Source: 2025 Aaru Lumen Alternative Fund Survey Simulation Q14 Alternative Fund Manager