Preqin’s latest survey of institutional investors globally that are active in alternative assets indicates that these institutions are growing increasingly proactive with their alternative asset portfolios.
Almost a third (30%) of investors have grown their investment teams sourcing private equity, hedge fund, real estate and infrastructure opportunities over the past two years, and a similar proportion expect them to grow over the next two years.
As alternative assets become an ever more important part of investor portfolios – over 35% of investors in each of the four main alternative asset classes plan to increase their allocations over the longer term – investors need sizeable teams to identify and monitor alternative assets investments.
Other Key Investor Outlook Facts:
- Only 4% of investors surveyed have decreased the size of their alternative assets investment team over the past year, with 66% having made no changes.
- 41% of private equity investors use an internal investment team to source new investment opportunities. This compares to 27% of hedge fund investors, 25% of real estate investors and 14% of infrastructure investors.
- At least a third of investors in each individual alternative asset class feel positively about the respective asset classes at present, with private equity investors most positive (51%).
- Hedge fund investors are least satisfied with their investments over the past 12 months, with 27% feeling their hedge fund investments have fallen short of expectations.
- A third of real estate investors feel their investments have exceeded expectations, with 14% of infrastructure investors, 12% of private equity investors and 9% of hedge fund investors feeling the same.