INDIANAPOLIS, June 3, 2019 /PRNewswire/ -- ADISA, the nation's largest trade association for the retail alternative investment space, announced today the results of its inaugural market prediction survey. The association conducted the survey with the participation of due diligence officers from dozens of independent broker-dealer (IBD) and registered investment advisor (RIA) firms in the financial industry.
Results of the survey indicate that all but six percent of due diligence officers predict an increase in revenue at independent broker-dealer and RIA firms during 2019, with more than 30% of respondents expecting growth of more than 20%. Additionally, more than 90% of respondents expect their firm to expand the use of alternative investments in 2019.
"The results of ADISA's inaugural market prediction survey are compelling and provide beneficial insight as well as a statistical representation of what alternative investment products are held by independent broker-dealer and RIA firms," said ADISA Executive Director and CEO John Harrison. "ADISA will conduct its market prediction survey at the beginning of each year, and we look forward to sharing next year's results with industry constituents in 2020."
Survey respondents indicated the following sales projections by product type for 2019:
- Approximately half of respondents predict that REIT preferred stock offerings will have an increase in sales.
- Roughly 40% of respondents predict more than a 10% increase in tax-advantaged fund sales.
- Approximately 20% of respondents predict an increase of less than 10% in opportunity zone fund sales, and another 20% predict growth of more than 10%.
- Private equity and private debt sales are projected to increase approximately 10%.
- Closed-end funds and interval funds are expected to have a moderate increase in sales, projected at approximately 9%.
- Oil and gas, non-traded REITs, infrastructure, hedge funds and asset lending/leasing programs are all expected to remain relatively flat.
Through calculating the number of programs actively held in total by respondents, ADISA was able to measure the popularity of the various types of alternative products. Real estate – Reg D programs were the most popular, with respondents holding an average of approximately eight programs on their platforms. Section 1031 exchange offerings were the second most common, with private equity – Reg D and closed-end/interval funds succeeding them.
ADISA also surveyed if respondents would "definitely allow" fee-based investments into client accounts. Approximately 80% of respondents would definitely allow NAV non-traded REIT, preferred stock non-traded REIT, lifecycle non-traded REIT, private debt (Reg. D), non-traded BDC and private equity (Reg. D) programs. Approximately 60% of respondents would definitely allow hedge funds, Section 1031 exchange offerings and infrastructure programs. Fewer than 50% would definitely allow energy, asset lending/leasing, opportunity zone, conservation easement and cyber coin programs.
The Alternative & Direct Investment Securities Association is the nation's largest trade association representing the non-traded alternative investment space. ADISA's members are typically involved in nontraded real estate investment trusts, business development companies, master limited partnerships and private and public funds (LPs/LLCs), 1031 exchange programs (DSTs/TICs), energy and oil and gas interests, equipment leasing programs, or other alternative and direct investment offerings. The association was founded in 2003 and has approximately 4,000 members who are key decision makers, representing more than 220,000 professionals throughout the nation – including sponsor members who have raised in excess of $200 billion in equity and serve more than 1 million investors.
Contact: Jill Swartz
Spotlight Marketing Communications