Nearly two out of three (64%) US and UK institutional investors are ‘very confident’ about alternative asset managers fund raising plans for alternatives over the next 18 months, new research from Ocorian has shown.
Another 35% of the investors focusing on real estate, private debt and infrastructure questioned by Ocorian are ‘quite confident’ about fund raising by alternative asset fund managers with just 1% saying they are concerned.
Institutional investors ranked the strong performance of alternatives in recent volatile markets and improvements in regulation as the top two reasons driving demand from institutional investors. Alternatives’ role in diversifying portfolios was identified as the third major reason for increased demand ahead of growth in the number of funds and innovation in the sector.
Real estate, renewable energy and private equity were ranked as the top three asset classes likely to see the most demand from institutional investors over the next three years in the research. Commodities were ranked the least likely behind crypto/digital assets.
Ocorian commissioned independent research company PureProfile to interview 102 senior executives and fund managers at financial institutions focused on investing in private debt, private equity, real estate and infrastructure in the US and the UK during June 2022