Are you looking to expand your RIA firm’s access to alternative investments? These strategies can offer higher return potential and greater diversification than traditional portfolios. Also, an increasing number of high-net-worth clients frequently inquire about them.
However, entering the private markets isn’t always simple. For most RIAs, gaining access to institutional-quality opportunities often comes with high minimums, complex compliance hurdles, and a steep learning curve. This is where RIA outsourcing can make a meaningful impact on your practice.
This article from Cornerstone Portfolio Research discusses how an OCIO for RIAs can simplify the process and open the door to alternative investments, all while helping your firm stay efficient, client-focused, and competitive.
The Growing Appeal of Alternative Investments
Interest in alternatives has surged over the past two decades, first among institutions and now among RIAs serving high-net-worth and ultra-high-net-worth clients. These investors increasingly seek exposure to strategies outside of public stocks and bonds, aiming for broader diversification and potentially higher returns.
Popular categories include:
- Private equity for long-term capital appreciation
- Real estate for income and inflation protection
- Hedge funds for non-correlated performance
- Infrastructure investments (e.g., toll roads, airports, utilities) known for inflation resilience and stable cash flows
- Commodities like gold, oil, or agriculture as inflation hedges
- Collectibles (art, coins, cars) for speculative upside, often appealing to ultra-wealthy clients
- Cryptocurrencies and blockchain-based assets, though highly volatile and evolving
- Litigation finance and royalty streams, both offering niche, income-focused strategies with low market correlation
What was once limited to institutions is now entering the RIA space, driven by clients demanding access to tools once reserved for endowments and pension funds.
Yet, private markets come with complexity. Working with an experienced Outsourced CIO in alternative investments for RIAs offers a way to deliver these benefits without taking on additional operational or compliance burdens.
Barriers to Alternative Investments for RIAs
Offering private market strategies to clients is a compelling opportunity, but it’s not without roadblocks. Here are three common challenges advisors face when trying to incorporate alternative investments on their own.
Due Diligence Complexity
Most RIAs lack the internal resources and specialized expertise needed to evaluate private investments thoroughly. Assessing fund managers, deal terms, liquidity constraints, and operational risks requires a deeper level of scrutiny than what’s typical for traditional portfolios.
High Minimum Investments
Many alternative investment funds require minimum commitments well beyond what individual clients—or even small- or mid-sized RIAs—can provide. These high entry points often exclude all but the most prominent firms or institutional investors. Without scale or pooled access, these investments can remain out of reach.
Regulatory and Compliance Issues
Alternative investments are subject to more stringent regulatory oversight. From accredited investor rules to new ESG-related disclosure requirements, the compliance burden for RIAs can be substantial. For advisors without in-house legal or compliance teams, managing these responsibilities can be overwhelming.
Partnering with an Outsourced Chief Investment Officer offers a practical way to address all three challenges.
How OCIOs Like Cornerstone Unlock Alternatives and Private Markets
Outsourced CIOs, such as Cornerstone Portfolio Research, offer independent advisory firms a path to expanded investment capabilities through institutional relationships, deep experience, and an understanding of RIA-specific priorities.
Robust Due Diligence Process
With over 70 years of combined expertise and CFA® Charterholder leadership, Cornerstone applies a disciplined approach to evaluating non-traditional assets. This includes analyzing fund managers, liquidity terms, investment structures, and associated risks, providing you with vetted insights to guide selection.
Access to Private Market Opportunities
Some OCIOs may provide access to carefully selected private equity, real estate, or hedge fund strategies. Cornerstone can make these opportunities more accessible, often through existing relationships or pooled structures that help reduce entry barriers for smaller advisory firms.
Seamless Integration
Cornerstone offers a custodian-neutral framework that’s designed to fit within your existing infrastructure. There’s no need to move assets or overhaul your setup. With white-labeled reporting options, your firm’s branding stays front and center, preserving client trust while expanding your capabilities.
Compliance and Risk Management
Staying current with evolving regulations, including the SEC’s 2025 ESG disclosure guidance, is a time-consuming task. Cornerstone strives to help reduce that burden by supporting your team with tools and insight that align with regulatory expectations and operational best practices.
Cornerstone’s OCIO services can simplify access to alternatives and private markets, positioning your firm to offer more without having to do more.
Questions To Ask an OCIO About Alternative Investments
When evaluating an OCIO partnership, it’s important to confirm its capabilities in sourcing and managing private market opportunities. Here are key questions to ask:
- What types of private market investments do you offer (e.g., private equity, real estate)?
- How do you conduct due diligence on alternative investments?
- Can you provide access to lower minimum investments?
- How do you handle compliance with SEC regulations for alternatives?
- What kind of reporting tools do you provide for private market holdings?
These questions help assess whether the OCIO has the expertise and operational capacity to deliver alternative strategies for RIAs. A transparent, direct response should give you confidence in their ability to add value.
How Cornerstone Strengthens Your Firm’s Investment Capabilities
Cornerstone Portfolio Research is an independent portfolio management and investment research firm based in Chester Springs, Pennsylvania, serving RIAs across the country. Our goal is to make outsourcing straightforward, affordable, and compatible with the way you already do business.
When you work with us, you don’t need to give up equity or overhaul your internal processes. We offer institutional-level resources without the cost or disruption of hiring a full-time CIO. Our pricing is lean, typically ranging from 5 to 20 basis points, with many of our clients falling on the lower end of that range.
We customize our research and investment models to reflect your approach, not a generic template. Our process is tax-aware, our communication is proactive and weekly, and we adapt our recommendations gradually to avoid disruption for your clients. Virtual meetings are available when needed, and we’re here to assist with both ongoing portfolio work and special requests.
If you’re exploring private market solutions or need more scalable investment support, contact us to learn how our OCIO services can fit your firm.
