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Institutional investors remain confident about alternative asset fund raising despite current market conditions

Institutional investors remain confident about alternative asset fund raising despite current market conditions

04 October, 2022

New research* from diversified financial services group Ocorian shows institutional investors are increasingly confident about alternative asset managers fund raising plans with real estate, renewable energy and private equity managers expected to see the most demand.

The study by the leading provider of fund administration, found nearly two out of three (64%) US and UK institutional investors focused on alternatives are ‘very confident’ about fund raising plans for alternatives over the next 18 months.

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 pension funds and other institutional investors over the next three years in the study. Commodities were ranked the least likely behind crypto/digital assets.

ASSET CLASSRANKING
Real estate1
Renewable energy2
Private equity3
Hedge funds4
Venture capital5
Private debt6
Infrastructure7
Crypto/digital assets8
Commodities9


Gerry Warwick, Director of Fund Services in UK and Ireland at Ocorian said: “Confidence in the ability of alternative asset fund managers to raise money despite current market conditions is high with nearly two-thirds of institutions very confident in their ability. It’s a reflection of recent strong performance from some asset classes and their growing acceptance by pension funds.”
 

To learn more about the report findings please click here
 

* 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