7 Alternative Assets to Strengthen Your Portfolio in 2026

If you want your portfolio to be more resilient in 2026, just leaning on stocks and bonds probably won’t cut it. More investors are looking beyond the usual suspects, searching for assets that can bring in steady income and don’t always swing with the market. Here are seven alternatives you should have on your radar, plus a few things to watch out for before you dive in.

1. Life Settlements

Life settlements are catching on fast. People are drawn to the predictable, market-independent cash flow. There’s more activity these days, pricing is tighter, and transparency’s getting better—thanks to more big money moving in.

You get stable returns that aren’t tangled up with interest rate changes. The downside? Liquidity. These policies can take years before they actually pay out. If you’re thinking about it, look closely at the fees, how the servicing works, and the assumptions behind the numbers.

Specialist managers like Abacus Global Management tend to shine here. They know the ins and outs, so it’s usually smarter to go with someone experienced rather than try to DIY.

2. Private Credit

Private credit’s been on a tear. Banks are lending less, so there’s more demand, and yields still look good. Direct lending and niche finance strategies are leading the charge.

Underwriting is a lot more rigorous now compared to ten years ago, but you still need to check the basics: How strong are the covenants? Is there too much concentration in one borrower? What’s the interest rate exposure?

Here’s a quick checklist:

• Look at the manager’s track record
• Check how transparent the portfolio really is
• Dig into their stress tests

3. Interval Funds

Interval funds exploded in popularity in 2024 and 2025. They give you access to private markets, but with limited liquidity. These funds might invest in everything from real estate to private credit to quirky stuff like royalties. Usually, you can get your money out every quarter, but redemptions might be capped.

The big selling point is easy access. The risks? Not fully understanding how the fund works, the fees, or how you can get your money out. Make sure the fund is clear about how they value assets and manage cash flow.

4. Farmland

Farmland keeps delivering steady income and is a solid hedge against inflation. With weather getting weirder, regions with reliable water and crop diversity look even more attractive. More institutional investors are getting involved, and the way these assets are valued keeps improving.

If you’re interested, do your homework: check the soil data, operator agreements, and exposure to commodity swings. Farmland isn’t liquid, but it’s held up well when the economy sours.

5. Music Royalties

Music royalties have gone mainstream. They offer cash flow that depends on what people are actually listening to, not how the economy’s doing. Legal research (think Paul Weiss) shows big investors are now mixing royalties with credit strategies.

Returns can be all over the place, depending on how old the catalog is, its genre, and what’s trending on streaming platforms. Look at the streaming history, copyright terms, and recapture rights before jumping in.

6. Catastrophe Bonds

Cat bonds really took off in 2025. Insurers wanted to offload climate risks, so now you’ve got bonds that pay higher yields for taking on stuff like hurricanes or wildfires.

The trick is understanding the risk models. Check the bond structure, how they model risks, and where the exposure actually is. Liquidity’s pretty good—better than a lot of other private investments.

7. Venture Secondaries

Venture secondaries let you get in on private, high-growth companies—without betting on the earliest stages. Discounts got bigger in 2024 and early 2025, so now’s a good time if you want more reasonable entry prices.

Pay attention to how diversified the vintages are, relationships with GPs, and how mature the companies are. Liquidity varies, but secondaries usually turn over faster than primary venture funds.

Wrapping Up