Key Takeaways
- • Cetera Financial Group launched its first Alternative Investments allocation model, the Cetera Blended Alternatives Model – Moderate, positioning itself as the first independent broker-dealer to introduce such a model for advisor use.
- • The initial model comprises six alternative funds providing exposure to private equity, private credit, and private real estate, designed to offer non-correlated asset classes and enhanced return potential for accredited investors without requiring additional advisor complexity.
- • Cetera's Due Diligence and Investment Management teams partnered with iCapital, an alternative investment marketplace, to research and vet the portfolio; iCapital will provide ongoing monthly and quarterly model-level reporting and monitoring.
- • The launch reflects growing market demand for alternative investment integration in client portfolios and enables advisors to deliver holistic, streamlined portfolio construction combining traditional and alternative assets.
Summary
Cetera Financial Group introduced its first set of Alternative Investments allocation models on July 2, 2025, marking what the company claims is the first such offering by an independent broker-dealer. The flagship product, the Cetera Blended Alternatives Model – Moderate, includes six alternative funds spanning private equity, private credit, and private real estate investments.
The model was developed through collaborative research and due diligence conducted by Cetera's internal Investment Management team in partnership with iCapital, an alternative investment marketplace and established business partner. According to Cetera, the partnership leverages deep expertise in the alternatives landscape to deliver data-driven fund manager selection. Christian Mitchell, president of Cetera Solutions, highlighted the company's confidence in the approach, emphasizing that the research rigor conducted by Cetera Investment Management informed the fund manager selections and validated the overall alternatives strategy.
The allocation model is designed to address a specific advisor pain point: providing access to non-correlated alternative assets without imposing additional operational burden or complexity. By packaging six vetted alternative funds into a single model, Cetera aims to streamline portfolio construction for advisors serving accredited-investor clients. The model enables a "holistic and streamlined approach" to diversification that combines traditional investments with alternatives, potentially enhancing risk-adjusted returns.
Ongoing governance and transparency are embedded in the structure. iCapital will maintain continuous monitoring of the Cetera Blended Alternatives Model and deliver monthly and quarterly model-level reporting, ensuring advisors and their clients have visibility into performance and risk metrics. The launch comes amid rising industry interest in alternative investment integration, with institutional and individual investors increasingly seeking non-traditional asset classes to enhance portfolio diversification and return potential.
The model was developed through collaborative research and due diligence conducted by Cetera's internal Investment Management team in partnership with iCapital, an alternative investment marketplace and established business partner. According to Cetera, the partnership leverages deep expertise in the alternatives landscape to deliver data-driven fund manager selection. Christian Mitchell, president of Cetera Solutions, highlighted the company's confidence in the approach, emphasizing that the research rigor conducted by Cetera Investment Management informed the fund manager selections and validated the overall alternatives strategy.
The allocation model is designed to address a specific advisor pain point: providing access to non-correlated alternative assets without imposing additional operational burden or complexity. By packaging six vetted alternative funds into a single model, Cetera aims to streamline portfolio construction for advisors serving accredited-investor clients. The model enables a "holistic and streamlined approach" to diversification that combines traditional investments with alternatives, potentially enhancing risk-adjusted returns.
Ongoing governance and transparency are embedded in the structure. iCapital will maintain continuous monitoring of the Cetera Blended Alternatives Model and deliver monthly and quarterly model-level reporting, ensuring advisors and their clients have visibility into performance and risk metrics. The launch comes amid rising industry interest in alternative investment integration, with institutional and individual investors increasingly seeking non-traditional asset classes to enhance portfolio diversification and return potential.
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