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Laxman Pai, Opalesque Asia: Despite macroeconomic challenges, institutional investors are poised to increase their stakes in private markets significantly over the coming years, said a survey.
State Street in its third annual private markets survey, which included insights from 480 institutional investors across North America, Latin America, Europe, and Asia-Pacific, including asset managers, insurance companies, and asset owners, indicates a continuing trend of shifting from public to private assets within portfolio allocations.
More than a third of institutions (36 percent) have already allocated over half of their portfolio to private markets, a number expected to rise to 41 percent within the next three to five years.
Additionally, 59 percent of institutions have allocated at least 30 percent to private markets, with projections reaching 71 percent by 2028.
Among private market asset classes, infrastructure and private debt emerge as the top choices for investors, with 71% anticipating increased allocations to each over the next one to two years.
Furthermore, private equity is poised for resurgence, with 73% of investors planning to ramp up allocations to this asset class in the longer term.
The majority of respondents (61%) believe that inflation has peaked in their local markets, but most do not believe it will fall back within their local central banks' target range over the next two years.
Most respondents (58%) are finding that macro...................... To view our full article Click here
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