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Laxman Pai, Opalesque Asia: Alternative assets are playing an increasingly important role in German institutional investor portfolios, with most of the respondents to the German Association for Alternative Investments' (BAI) annual survey increasing their exposure to alternatives in 2019.
German investors are active across a range of alternative asset markets, with the majority of the 75 survey participants investing in multiple asset classes. Over three-quarters (78%) invest in equity real estate, 77% in private equity, and 60% in corporate private debt.
Based on the BAI investor survey and a separate BAI private debt study in 2019, other debt classes such as real estate and infrastructure are becoming increasingly attractive.
According to Preqin, institutional investors in Germany have seen their assets under management (AUM) increase, with a total AUM of Germany-based insurance companies and pension funds at €3.7tn
"Looking forward to 2020 and beyond, we expect even greater demand for established alternatives from investors in Germany. With sectors across alternatives, such as renewable infrastructure or real estate logistics, delivering stable returns during the crisis, the value of an alternatives allocation is becoming increasingly apparent to institutional investors," said Annette Olschinka-Rettig, Bundesverband Alternative Investments e.V.
Nevertheless, deploying capital will be challenging: processes for mandating new asset managers are sti...................... To view our full article Click here
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