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Alternative Market Briefing

Allocators added $130bn to private markets last year

Wednesday, April 27, 2022

Bailey McCann, Opalesque New York:

Mandate activity among the largest institutional investors soared in 2021 across private equity, private credit, real estate and infrastructure, and hedge funds according to research commissioned by Vidrio Financial, a provider of software and integrated data services solutions for institutional alternative allocators globally. The research tracked a total of $130 billion in new capital across more than 900 individual Institutional investor mandates in 2021.

Among the top 10 allocators to alternative investments annualized investment gains spanned 12% to 34%. The new investment commitments put to work, by the largest U.S. public pensions, averaged from $5 billion to $17 billion.

The total new assets put to work in alternatives last year, exceeds that of 2020 by approximately $30 billion.

Private equity remains the most popular alternative asset class among institutional investors with more than 500 funds selected for a total of $64 billion in new capital. Private equity was followed by real estate/infrastructure funds, which attracted $27 billion as did credit funds last year. Hedge funds still lagged behind attracting only $8 billion last year from the largest institutional investors.

Firms that raised the most included Hellman & Friedman; Brookfield Asset Management; Ares Management; and fund of hedge funds K2 Advisors.

Expectations for 2022 are trending down, however. "Investors are not expecting 2022 to yield th......................

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