The questions you need to ask before joining Wall Street’s $2 trillion party. Good questions are every investor’s best defense. Between now and 2030, advisers will move some $2 trillion of client money into alternative funds, per Cerulli Associates estimates. Whether this works out depends on the right questions. This column will get you started.

The problem is urgent: many advisers lack experience analyzing private equity, hedge funds, nontraded real estate, private credit and other alternative assets. Detailed analysis is mandatory. Private private funds can carry hefty, variable fees, murky marketing, and infrequent, shadowy valuations that insiders admit may be dubious. You may buy anytime but hold for years, with limited sale windows, and face tax and estate planning complications. These funds often require high minimum investments and can be inaccessible to retail investors, adding another layer of complexity.

Before you commit, ask about fee structures, liquidity limits, valuation methodology, and the adviser’s track record. Verify how the fund’s performance will affect your tax liability and estate plans, and ensure you understand any lock‑up periods or redemption windows. Consider how the fund’s illiquidity may affect your overall portfolio diversification and risk tolerance. Clear answers will show if the investment fits your goals.