Alternative investments are becoming a more established part of wealth management. As access to private markets expands, firms are incorporating more private equity, private credit, real estate, and other less-liquid investments into portfolios.
Cerulli’s U.S. Private Markets 2026 report found that 11% of advisors across distribution channels are “alternatives super-users,” allocating at least 10% of portfolios to less-than-fully-liquid alternative investments.
As younger generations inherit wealth and bring different investment preferences, demand for alternative investments may continue to rise. These younger investors are showing a strong interest in private markets. The 2026 FTSE Russell Wealth Pulse Survey found that 67% of affluent Millennials already invest in private markets, compared with 30% of Gen X and 11% of Baby Boomers.
Alternatives Change the Liquidity Conversation
As exposure to alternatives grows, wealth managers must look beyond allocation and current value. Private investments can create future cash-flow obligations and potential liquidity sources that unfold over the years.
Capital calls can require investors to provide additional funding, while distributions may occur at different points in an investment’s lifecycle. The timing and amount of those cash flows can vary by fund and aren’t always easy to incorporate into a client’s financial plan.
That makes liquidity planning particularly important. A wealth manager may understand how much a client has invested in alternatives, but not how those investments could impact the client’s available cash over time. A more complete view considers what has already been called, what may still be required, what could be distributed, and how those flows fit together across the portfolio.
This is especially relevant for clients with multiple private investments. Each fund has its own timeline, assumptions, and expected cash flows. Looking at investments individually can make it difficult to understand the cumulative effect on the portfolio.
As we discussed in a recent Tech It Up podcast, Simplifying Alternative Investment Cash Flow Planning, this is where technology can play an important role. Rather than piecing together projections across individual spreadsheets, an integrated solution can bring alternative cash-flow analysis into the same workflow wealth managers use to manage the rest of the portfolio.
Bringing Alternative Cash Flows Into View
With Cash Flow for Alternatives from SS&C Black Diamond® Wealth Solutions, firms can model and monitor the projected cash flow of private investments within Black Diamond.
The tool provides a consolidated view of alternative investments and their projected cash flows, illustrating how capital calls, distributions, net asset value, and total asset value may evolve.
At the portfolio level, wealth managers can view allocations across private investments alongside aggregate net cash flow projections and alternative assets exposure. This creates a clearer picture of how alternative holdings may affect a client’s overall liquidity profile.
Users can also drill into an individual fund to examine its projected capital calls, distributions, net asset value, and total asset value over its lifecycle. Ten-year asset value charting and J-curve visualizations provide an intuitive way to see when capital is expected to be deployed, when distributions may occur, and how net cash flow changes over time.
Black Diamond brings this analysis into the advisor workflow, so wealth managers don’t need a separate spreadsheet or manual model.
With projections available at both the individual investment and aggregate portfolio levels, wealth managers can spend less time assembling cash-flow estimates and more time incorporating expected capital calls and distributions into portfolio planning and client conversations.
As private markets become a more established part of client portfolios, this visibility can help wealth managers anticipate liquidity needs and understand how alternative investments fit into the broader financial picture.
To see how SS&C Black Diamond Wealth Solutions supports alternative investment management, request a personalized demo, call 1-800-727-0605, or email info@sscblackdiamond.com today.
