Opalesque Industry Update - Strong performance across most asset classes has kept satisfaction high, according to Preqin: Preqin's Investor Outlook: Alternative Assets, H1 2020* finds that investors are generally satisfied with performance in 2019. A minimum of 71% of investors in each private capital asset class said that returns met or exceeded their expectations. Even among hedge fund investors, 59% of investors felt returns met or surpassed their needs, up from 45% at the end of 2018. This has kept investor appetite strong: a vast majority of investors in each asset class will maintain or increase their allocations in both the next 12 months and over the longer term. But significant concerns remain, primarily around the pricing of private capital deal opportunities and the effect of market volatility and political uncertainty on hedge funds. Nicole Lee, Head of Content, says: "The position of the market cycle is still at the forefront of investors' minds - even more so in 2020 as we see major stock indices record sizeable losses**. But if anything, this concern is only increasing their appetite for alternative assets. Strong performance has broadly met expectations, and investors are doubling down on the sector to keep providing returns in difficult times. Choppy waters are ahead, and the industry is not immune to trouble, but for now investors are still seeking alternatives." Key Investors Outlook Facts:
In the alternatives industry, 74% of investors allocate to at least one asset class. The largest proportions allocate to private equity (66%), real estate (60%) and hedge funds (46%).
Preqin is the Home of AlternativesTM, the foremost provider of data, analytics and insights to the alternative assets community.
Press release For more information and analysis, see the full Preqin Investor Outlook: Alternative Assets, H1 2020 here: Article source - Opalesque is not responsible for the content of external internet sites |
Industry Updates
Alternatives investor appetite holds steady in the face of challenging market conditions
Thursday, March 05, 2020
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