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Laxman Pai, Opalesque Asia: Private wealth represents "a phenomenal opportunity for the alternatives industry" as it is increasingly being used to fund alternative investments, said a study.
According to the report by data provider Preqin, fund managers are increasingly pivoting towards the private wealth industry when it comes to capital raising, as it has become more difficult to achieve the same from institutional investors and private capital.
"This change is owed to a favorable regulatory backdrop and larger fund managers already making significant headway with the likes of KKR, Apollo, and Blackstone setting ambitious capital raising targets," it said.
The report said that global private capital has seen over a trillion dollars in inflows from institutional investors for several years in a row. However, the environment is becoming increasingly challenging for raising capital as more investors approach their long-term strategic asset allocation targets and face economic headwinds.
Highlighting this trajectory, Preqin analysts forecast that institutional global private capital fundraising will grow to $1.58tn by 2027 - from $1.16tn in 2022 - at a relatively muted 3.57% compound annual growth rate (CAGR) over the period. This represents a material slowdown from the 11.70% CAGR seen between 2015 and 2021.
To date, allocations to alternative investments by individual investors have been kept below 5% in many instances. High minimum investments, a...................... To view our full article Click here
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