Boomer wealth transfer to push trillions into alternatives

Cerulli Associates projects more than $60 trillion in U.S. baby-boomer wealth will transfer to millennials and Generation Z by 2048. As assets change hands, younger heirs are reassessing long-standing relationships with private banks and wealth managers and reallocating money into hedge funds, venture capital, private equity, digital assets and direct investments in technology companies.

Industry data show traditional wealth managers lost about $1.5 trillion of advised assets between 2022 and 2025 as affluent clients moved assets to newer competitors. Those outflows reduced capital available for standard retail and advisory products and created openings for alternative managers and fintech platforms to build direct relationships with younger investors.

Major alternative managers such as Blackstone and Apollo have expanded private wealth offerings to give individual investors access to products previously limited to institutions. Venture capital firms are broadening investment vehicles to allow more individual participation in private technology deals. Hedge funds are positioned to see increased demand for return streams outside traditional equity and bond portfolios.

Established banks and wealth firms are investing in online platforms, client engagement tools and lower-cost product wrappers, and are expanding access to private markets through pooled vehicles and managed accounts. Fintech startups and digital brokerages are marketing lower-fee, technology-driven solutions that emphasize cost and transparency.

Competition among banks, alternative managers and fintech platforms to capture inherited capital is increasing. The speed and scale of any reallocation will be shaped by regulatory changes, fee structures, product availability and the extent to which heirs allocate portions of inherited wealth to illiquid private market investments.