Business Breakdowns Alternative Investing: Alts For All - [Business Breakdowns, EP.234]
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Nov 7, 2025 
In this discussion, Josh Clarkson, Managing Director at Prosek Partners and a private markets expert, dives into the expanding world of alternative investments. He highlights Morgan Stanley's $4 trillion opportunity and explains how retail access is evolving through regulatory changes. Clarkson also breaks down various investment products like non-traded REITs and interval funds, emphasizing their appeal for retirement accounts. He shares insights on which strategies will thrive in this new landscape and the advantages held by larger asset managers.
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$4 Trillion Retail Alternatives Opportunity
- Morgan Stanley estimates a $4 trillion AUM opportunity if retail alternatives match institutional allocations closer to 15–20%.
- Individuals today hold ~2–5% in alternatives versus institutions' ~20–30%, leaving massive runway for growth.
Headlines Don’t Equal Private Markets Collapse
- Recent headline failures (First Brands, Tricolor) were primarily liquid-market financed and not emblematic of private credit collapse.
- Clarkson argues private credit and direct lending may be safer ways to access sub-investment grade yields than liquid markets.
Policy Shift Drives 401(k) Alternatives Push
- Trump's executive order reignited focus on adding private markets to 401(k) and DC plans, reversing prior skepticism.
- That policy shift is a major catalyst for expanding retail access to alternatives.