Empowering Advisor Education

Financial advisers in developing markets face a steep learning curve when it comes to alternative investments. In regions where alternatives account for just 1–2 % of total portfolios, lack of education, limited data and perceived complexity limit adoption. This whitepaper argues that sell‑side alternative asset managers are uniquely positioned to close the knowledge gap and catalyze wealth creation. Drawing on research from global industry surveys, academic studies and real‑world case studies, the paper shows that asset managers view advisor and client education as the most important priority. and that comprehensive programs—from basic training to advanced due diligence—can empower advisers at all experience levels. The paper also illustrates how firms like KKR, Future Standard and Goldman Sachs are developing education platforms that offer continuing‑education credits and practice‑management tools. Ultimately, the article lays out an action framework for asset managers to integrate education, transparency, technology and trust into a holistic strategy that benefits advisers and investors alike.

Introduction: The Untapped Potential of Alternatives in Developing Markets

In established financial centers, alternative investments—including private equity, private credit, infrastructure, hedge funds and real assets—are no longer exotic. Institutions allocate double‑digit percentages of portfolios to these strategies and have built sophisticated due‑diligence teams to manage them. Yet in many under‑developed or emerging markets, alternatives remain rare: a 2021 study of African pension funds found that allocations to local alternative assets ranged from 0 % to 2.7 % of assets under management. Nigeria held the highest share, investing 2.7 % of AUM, mainly in government sukuk and infrastructure bonds. while countries like Ghana, Kenya and Namibia allocated less than 1 %. Limited data, complex structures and regulatory restrictions restrict adoption. Similar patterns appear in Latin America, parts of Asia and Eastern Europe, where investor portfolios are dominated by cash, fixed income and listed equities. The consequences are severe: investors miss out on the higher returns, income and diversification that alternatives can offer, and advisors struggle to deliver on long‑term goals.

The challenge is not solely regulatory. A major barrier is education—or lack thereof. Alternative investments are complex products that require specialized knowledge about illiquidity, valuation methodologies, fee structures and risk management. Without training, advisers fear mis‑selling or breaching fiduciary duties; clients are equally hesitant. For under‑developed markets, where investor protection frameworks may be less robust and cross‑border products rare, these concerns are amplified. At the same time, technological innovations—tokenization, fractional ownership, digital marketplaces and exchange‑traded notes—are lowering minimums and making alternatives more accessible, creating a pressing need for advisers to keep pace. This whitepaper explores how sell‑side alternative asset managers can address these gaps, not only through product design but by becoming partners in advisor education and market development.

The Education Gap: Complexity, Confidence and Consequences

Advisors Need More than Basic Knowledge

Research by consultancy Escalent finds that alternative investments require additional knowledge beyond traditional equities and bonds, and that advisor and client education is considered the most important factor by asset managers. Many advisers spend significant time teaching clients how to purchase alternatives; yet more education is needed on due‑diligence practices, fee structures and managing illiquidity. Escalent suggests a tiered educational approach: basic concepts for non‑users; intermediate training for advisers with 1–9 % of AUM in alternatives; and advanced modules for those with more than 10 % of portfolios in alternatives, covering detailed due diligence, cost structures, tax implications and operational burdens. The absence of such structured programs in many developing markets leaves advisers either under‑prepared or over‑confident.

Evidence from Emerging Markets

The Africa pension study highlights not only low allocations but also poor reporting and data availability: regulators in Ghana and Botswana had to create broad “alternative investment” categories to encourage disclosure. Only Kenya, Nigeria and South Africa provide disaggregated data. Without consistent information, advisers cannot benchmark performance or conduct appropriate due diligence. The same issue emerges across emerging markets in Asia and Latin America: limited local benchmarks, scarce historical performance data and unfamiliar risk metrics hinder adoption. In a Preqin Latin American investor survey, 60 % of investors planned to increase private debt allocations, yet allocations remained low, indicating a readiness gap rather than lack of interest. These data points underscore that lack of knowledge—not just regulation—restricts growth.

Regulatory and Cultural Barriers

Regulatory environments often reflect caution about allowing complex products into retail channels. Suitability rules, capital controls and limited legal frameworks for private investments restrict product distribution. Advisors in markets like India, China and parts of Africa must navigate restrictions on offshore investing and limited local fund offerings. Cultural factors also play a role: there is often a conservative investment culture, shaped by past crises and mistrust of opaque structures. Many investors view alternatives as speculative or exclusive to the wealthy. Without credible education and trusted sponsors, new products struggle to gain traction.

The Sell‑Side Imperative: Why Asset Managers Must Lead

Education as a Strategic Priority

Alternative asset managers have a vested interest in expanding adviser knowledge. They invest heavily in deal sourcing, due diligence and operational infrastructure; yet without educated advisers, product distribution stalls. Recognizing this, many managers rank education as their top marketing and distribution priority. Asset managers are also best positioned to demystify complex structures because they understand the underlying assets, risk drivers and liquidity mechanics. By delivering accessible education, they can build trust, mitigate mis‑selling risks and expand their addressable market.

A Duty to Empower Advisers and Investors

While regulators and industry bodies set standards, sell‑side managers can accelerate learning through proactive engagement. The CAIA Association’s Fundamentals of Alternative Investments program emphasizes that understanding alternatives is essential to provide comprehensive solutions aligned with clients’ risk tolerance and goals. The program is crafted with contributions from industry experts across asset and wealth management, signaling that the sell side should not be passive. Advisors who master alternative investments can offer clients diversified portfolios that better withstand market turbulence; this aligns with asset managers’ commercial incentives, as broader adoption drives flows and fee revenues. Moreover, empowered advisers can identify suitable strategies rather than defaulting to products with the highest commissions, thus aligning interests and enhancing long‑term client relationships.

Closing the Trust Gap

Trust is critical in emerging markets where investors may be wary of financial institutions. Sell‑side managers can build trust by sharing detailed information on performance, fees and risks; providing case studies of successful investments; and demonstrating commitment to client outcomes. Transparent education fosters informed consent and reduced the risk of regulatory backlash. It also positions asset managers as partners rather than product pushers, which is vital when entering new markets.

Building an Education Ecosystem: Case Studies and Innovations

KKR’s “Alternatives Unlocked” Platform

Global investment firm KKR recognizes that the traditional 60/40 portfolio is under pressure and that investors may need alternative sources of diversification. Its Alternatives Unlocked education platform focuses on the private markets and empowers investors to explore alternative opportunities. The platform provides continuing‑education credit opportunities for financial professionals, offering modules on private equity, infrastructure, real estate and private credit. It also includes practice‑management resources to help advisers differentiate their practice and integrate alternatives into portfolios. By emphasizing macro perspectives and data on the number of private versus public companies, KKR contextualises the opportunity and helps advisers articulate it to clients.

Future Standard’s “Know Your Alternatives” Program

Future Standard (FS) Investments, formerly FS Thrive, takes a multi‑modal approach. Its “Know your alternatives” program offers in‑person and on‑demand courses for CFP®, IWI and CFA credit on topics including private equity, private credit and private markets, education on alternative investments” and offers partners access to new solutions, potential opportunities and market trends. The firm also sponsors advisers to undertake the CAIA Association’s Alternative Education program, which it considers one of the best comprehensive training tools.This approach shows that sell‑side firms can go beyond self‑promotion by collaborating with independent educational bodies and aligning with globally recognized credentials.

Goldman Sachs Investment University (“Alts University”)

In May 2025, Goldman Sachs Asset Management (GSAM) launched Alts University, a free, online platform designed for advisers and individual investors. The digital offering includes live, virtual and interactive education on alternative investments and guidance on how to integrate them into client portfolios. GSAM’s global head of alternatives third‑party wealth noted that alternatives are an increasingly important source of diversification but require specialized knowledge. The curriculum covers private equity, private credit, real assets and hedge funds, as well as portfolio construction, risk management and vehicle selection. By tailoring content to both novice and experienced advisers and making it free, GSAM broadens access and sets a high bar for industry education.

Other Initiatives

Many other asset managers offer educational programs, often in partnership with CAIA or CFA Institute. For example, FS Investments emphasizes its partnership with CAIA and encourages its business development team to complete the program. Meanwhile, local asset managers in emerging markets are starting to provide webinars, podcasts and simplified guides. These initiatives demonstrate that the sell side recognizes the importance of adviser education and that there is a competitive advantage to being perceived as an educator rather than a mere product provider.

Beyond Knowledge: Transparency, Data, Technology and Trust

Transparency and Data

Providing education is not enough; it must be backed by transparent data and accessible benchmarks. In public markets, investors benefit from daily NAV reporting, audited financial statements and robust secondary markets. Private markets cannot replicate this entirely but can move closer through standardized reporting and disclosure. The Institutional Limited Partners Association (ILPA) developed a fee and performance reporting template that nearly half of the market adopted. The CFA Institute emphasizes that transparency provides a competitive edge and improves investor relationships. Technology such as APIs and dashboards can collect and visualize data in real time. Sell‑side managers should adopt such standards and provide investors with regular valuations, fee breakdowns, and performance comparisons against relevant benchmarks, especially for semi‑liquid vehicles. Morningstar extended its Medalist Rating to semi‑liquid interval funds, providing a consistent, forward‑looking assessment of private market strategies. Asset managers can integrate these ratings into their educational materials to help advisers compare products.

Technology and Delivery

The way education is delivered matters.  Interactive online platforms, webinars, podcasts and micro‑learning modules are effective in reaching advisers who may not have time for lengthy program. Tokenization and digital distribution channels themselves create educational touchpoints: as managers issue tokenized ETNs or feeder funds, they can embed data dashboards, risk metrics and explanatory videos into the subscription process. Digital marketplaces like iCapital and SEI Access already incorporate educational content and due‑diligence tools; asset managers should ensure their products on these platforms include robust educational resources. Augmented reality and gamified learning may play a role in the future, especially for younger advisers.

Building Trust through Ethics and Governance

Education must be accompanied by ethical conduct and governance. In emerging markets, scandals and Ponzi schemes have eroded trust. Asset managers must commit to high standards of governance, conflict management and investor protection. They should disclose incentives, align fee structures with performance and avoid predatory sales tactics. In this respect, regulators have a role, but asset managers can lead by example. Providing case studies of successful exits and transparent communication around failures fosters credibility. Managers can also partner with local associations and regulators to develop investor‑protection frameworks and training for licensing and compliance.

Localization and Cultural Sensitivity

Education programs must be tailored to local contexts. Translating materials into local languages, referencing local case studies and acknowledging cultural attitudes toward risk can enhance engagement. In Africa, for example, emphasizing the role of private credit and infrastructure in supporting economic development may resonate with advisers and clients. In Latin America, where high inflation and currency volatility are common, emphasizing inflation‑protected private assets may be effective. Asset managers should also be mindful of religious and ethical considerations (e.g., Sharia‑compliant products) and ensure educational materials address them.

Action Framework: How Asset Managers Can Contribute

Drawing on the insights above, the following framework outlines practical steps for sell‑side alternative asset managers to support advisor education in developing markets:

1. Develop Tiered Education Pathways.Offer structured program for novices, intermediate users and advanced practitioners, covering foundational concepts, due diligence, operational considerations and advanced portfolio construction. Provide certification or continuing‑education credits to incentivize completion.
2. Collaborate with Industry Bodies.Partner with organizations like CAIA and CFA Institute to leverage existing curricula and accreditations. Sponsor advisers’ participation and encourage internal teams to undergo the program.
3. Provide Transparent Data and Benchmarks.Adopt ILPA‑style reporting templates, share quarterly valuations and fees, and benchmark performance against relevant indices. Integrate tools like Morningstar’s Medalist Rating into product materials.
4. Leverage Digital Platforms.Create interactive platforms offering on‑demand courses, webinars and micro‑lessons. Ensure products available on digital marketplaces include embedded education and risk analytics.
5. Localize Content.Adapt materials for local regulations, languages and cultural contexts. Use local case studies and highlight how alternatives support economic development and diversification.
6. Foster Community and Dialogue.Host local workshops, webinars and roundtables with regulators, consultants and advisers. Facilitate peer‑to‑peer learning and encourage feedback to refine curricula.
7. Demonstrate Ethical Standards.Commit to transparent fee structures, robust governance and disclosure. Share success stories and lessons learned to build credibility.
8. Invest in Research and Thought Leadership.Produce whitepapers, podcasts and blogs addressing market developments, regulatory changes and innovations. Share macro insights, sector analyses and case studies to inform advisers and clients.
9. Support Regulatory Reform.Engage with regulators to design appropriate frameworks that allow broader access to alternatives without compromising investor protection. Offer pilot program and sandbox initiatives to test new vehicles.
10. Measure Impact.Track adviser participation, knowledge gains, product adoption and client outcomes. Use feedback to refine programs and demonstrate the commercial and societal benefits of education.

Conclusion: A Call to Action for the Sell‑Side

In developing markets, the promise of alternative investments remains largely unrealised. Allocations are often below 2 %, depriving investors of diversification, income and growth opportunities. Regulatory constraints and cultural conservatism contribute, but the primary barrier is a knowledge gap. Sell‑side alternative asset managers can and must take a leadership role in bridging this gap. By providing tiered education, transparent data, technological tools and ethical guidance, they can empower advisers to confidently integrate alternatives into client portfolios. Real‑world initiatives by firms such as KKR, Future Standard and Goldman Sachs demonstrate the potential impact. As asset managers collaborate with industry bodies and local stakeholders, they not only expand their own distribution but also contribute to the economic development of emerging markets. The broader the perspective advisers can offer, the greater the opportunities for their clients—and the more resilient the global financial system will become.

Key Takeaways

1. Allocations to alternatives in developing markets remain extremely low.African pension funds allocate 0–2.7 % of assets to local alternatives; similar patterns exist across emerging markets, highlighting a substantial opportunity for growth.
2. Education is the top priority for asset managers seeking to expand into alternatives.Studies show that alternative investments require additional knowledge and that adviser and client education is viewed as the most important factor by asset managers.
3. Tiered education and collaboration are essential.Advisors require different levels of training depending on their exposure to alternatives; partnerships with institutions like CAIA and CFA Institute can provide credible curricula.
4. Leading asset managers are already building education platforms.KKR’s Alternatives Unlocked, Future Standard’s Know Your Alternatives and Goldman Sachs’ Alts University offer continuing‑education credits and practical guidance.
5. Beyond knowledge, transparency and technology are key.Adoption hinges on standardized reporting, accessible data and digital delivery channels. Asset managers must also localize content, demonstrate ethical standards and actively support regulatory reforms to build trust and expand access.