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Laxman Pai, Opalesque Asia: Over two-thirds (68%) of institutional investors plan to continue growing their allocations to private markets asset class despite the tough economic environment, with some of them expecting discounts on assets.
According to new research from State Street Corporation, within this sector, private equity remains the most attractive asset class: 63% of institutional investors anticipate making it their largest allocation over the next two to three years.
The survey of 480 institutional investors including traditional asset managers, private market managers, insurance companies, and asset owners across North America, Latin America, Europe, and Asia-Pacific revealed that private credit is the asset class investors are least likely to make their largest allocations to, (43%), with real estate and infrastructure both at 48%.
Respondents made it clear they were going to be more focused on deal quality in the future with many making changes to their due diligence processes (47%) or narrowing the universe of investments they will consider through higher baseline standards (42%).
There is a strong consensus among private market managers (66%) that alternative assets can add value for retail investors who are seeking new sources of diversification. Moreover, 72% of respondents believe that increased transparency will make private market assets suitable for retail investors. A majority (58%) believed digital fractionalization of private market a...................... To view our full article Click here
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