Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Unlisted natural resources AUM to hit $271bn in 2025 with a CAGR of 5.1%

Thursday, November 12, 2020

Laxman Pai, Opalesque Asia:

Preqin predicts unlisted natural resources assets under management (AUM) will hit $271bn in 2025. The projected 5.1% compound annual growth rate (CAGR) over the period is well below our 9.8% forecast for all alternatives, but higher than growth rates for real estate, hedge funds, and infrastructure.

"Despite AUM growing at a CAGR of 5.1% through to 2025, natural resources will remain an asset class for specialists - with innovation and ESG the keys to value creation," said the report.

In 2020 COVID-19 undermined demand for energy and dislocated global supply chains across all industries, but as economies adapt to the new environment, industries will need to invest in new technologies if countries are to achieve their ambitious decarbonization targets.

"Investors in natural resources have a steady commitment to the asset class," said Jordan Poulter, a researcher at Preqin.

More than a fifth (22%) of investors surveyed by Preqin do not expect allocations to change through to 2025, with the proportion planning to increase allocations (19%) a little larger than those looking to decrease (15%), with roughly half of the respondents not investing in the class at all.

The collapse of oil prices, particularly Brent oil futures, may indicate that we have passed peak oil. In fact, BP's 2020 Energy Outlook says oil demand could fall by as much as 50% over the next two decades.

Technology will drive investment in other ......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1