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Alternative Market Briefing

Investors rethink allocations as uncertainty grows

Tuesday, April 01, 2025

Bailey McCann, Opalesque New York:

Investors are more cautious about their allocations going into the second quarter of 2025 and beyond, according to new data from Nuveen.

Nuveen's annual institutional investor survey shows that institutions are planning to adopt a risk-on posture for portfolios for the remainder of 2025. 39% are planning to decrease their cash exposure and make defensive investments.

Private markets continue to take a bigger and bigger share of investor portfolios. 92% of institutions in the survey said that they had exposure to private equity and private credit compared with 45% in 2021. A further 66% of respondents plan to increase allocations over the next five years, up from 55% last year.

According to Nuveen, over the past few years, institutions have increasingly prioritized internal agility, with many refining their operations and decision-making processes. This internal focus has strengthened their ability to pursue growth opportunities with conviction in the face of uncertainty. As a result, institutional investors are exhibiting more comfort with pursuing investment opportunities despite higher volatility. More investors are turning to sectors like infrastructure and real estate, which offer long-term growth potential and can also serve as a hedge against inflation.

"Institutions are increasingly pursuing a dual approach to private investments, balancing broad asset classes such as private equity, private credit, infra......................

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