Cetera Launches Blended Alternatives Model: What Investors Should Know
Cetera Financial Group recently announced a new investment offering for accredited investors: the Cetera Blended Alternatives Model – Moderate, a portfolio of six alternative funds with exposure to private equity, private credit, and private real estate. While the firm promotes the model as a way for advisors to simplify access to non-traditional assets, investors should proceed with caution.
Cetera has faced regulatory scrutiny in the past for how its advisors have marketed and sold alternative investments. Given the history—and the inherent complexity of alternative investments—investors should take the time to fully understand the product and ensure their advisor has acted in their best interest.
What is the Cetera Blended Alternatives Model – Moderate?
Launched in July 2025, the Cetera Blended Alternatives Model – Moderate is the first of several alternative investment model portfolios being introduced by the firm, according to a press release. It includes a curated selection of six funds offering exposure to:
- Private Equity
- Private Credit
- Private Real Estate
The model was reportedly developed in collaboration with iCapital, a platform specializing in private market investments. According to Cetera, the model allows financial advisors to provide institutional-quality alternatives in a “streamlined and scalable” way for their accredited-investor clients.
Risks of the Cetera Blended Alternatives Model
Whilealternative investments can offer diversification and the potential for enhanced returns, they also present significant risks—many of which may not be fully understood by retail investors. These risks include:
- Illiquidity: Many alternative funds are difficult to exit without substantial penalties or waiting periods.
- Valuation Complexity: These investments are often not marked-to-market and rely on estimated values.
- Limited Transparency: Investors may receive minimal information on fund holdings, strategies, or performance.
- Leverage and Speculation: Some funds use borrowed money or high-risk strategies, increasing potential losses.
- Regulatory Oversight: Alternative products often lack the same level of scrutiny as traditional securities.
- Tax Complications: These products can generate complex tax documents and unexpected liabilities.
The Importance of Broker Due Diligence
Under FINRA Rule 2111, financial professionals must have a reasonable basis to believe an investment is suitable for a client based on their financial profile, investment objectives, liquidity needs, and risk tolerance.
Even if Cetera performed firm-level research on the funds in its model, individual advisors must conduct their own due diligence before making recommendations. This includes:
- Understanding each underlying fund and its strategy
- Explaining the investment’s risks and limitations
- Ensuring the investment aligns with the client’s goals
- Providing full and fair disclosure of any conflicts of interest
If your advisor failed to do this, or misrepresented the product’s benefits or risks, you may have legal options.
Can Investors File a Claim if There’s a Problem?
Yes. Investors who are sold unsuitable investments or who are misled about risks may be able to recover damages through FINRA arbitration. This forum allows clients to bring claims against their brokerage firm or individual advisor for:
- Misrepresentation or omission of material facts
- Unsuitable investment recommendations
- Breach of fiduciary duty
- Failure to supervise
The White Law Group has extensive experience pursuing FINRA arbitration claims involving complex and illiquid products, including:
- Non-traded REITs
- Private equity funds
- Structured products
- Alternative model portfolios
Concerned About the Cetera Blended Alternatives Model?
If your Cetera financial advisor has recommended the Blended Alternatives Model, now is the time to ask questions. Understanding how the investment works—and whether it aligns with your needs—is critical, especially given the history of regulatory issues involving alternative product sales at the firm.
While it may be too early to assess performance or losses, investors should review:
- How the investment was explained to them
- Whether alternative options were presented
- How liquid their portfolio is now
- Whether they fully understood the risks involved
Contact a Securities Attorney
The White Law Group is currently investigating how these new model portfolios are being sold to investors. If you have concerns about a recommendation you received from a Cetera advisor, call us at 888-637-5510 for a free consultation.
We represent investors nationwide and work on a contingency fee basis—meaning you don’t pay unless we recover money for you.
You can also visit us at www.whitesecuritieslaw.com for more information.
Frequently Asked Questions
1. What is the Cetera Blended Alternatives Model – Moderate?
It’s a portfolio of six private investment funds created by Cetera for accredited investors. It includes exposure to private equity, credit, and real estate, and is designed to add diversification beyond traditional stocks and bonds.
2. Why should I be cautious about alternative investments?
Alternative investments often carry greater risk, limited transparency, and reduced liquidity. Investors may not be able to easily access their funds, and valuations can be hard to verify.
3. What should I do if I don’t understand my investment or feel it was misrepresented?
Start by reviewing your investment documents and the risk disclosures. Then consider speaking with a securities attorney to assess whether your broker may have failed to meet their regulatory obligations. You may be eligible to file a claim through FINRA arbitration.
Last modified: July 3, 2025
