Thursday, 30 March 2017
Last updated 4 hours ago
Feb 22 2017 | 2:43pm ET
Alternative investors have significantly increased their asset class diversity over the past year, according to new research from data provider Preqin, while satisfaction with private equity is at record levels.
More than a third of investors have exposure to at least four alternative asset classes at the start of 2017, a significant increase from a year ago, while half now hold allocations to three or more, the company said in a statement. The observations, included in Preqin’s H1 2017 Investor Outlook: Alternative Assets, are based on a survey of 533 institutional investors conducted by Preqin in December 2016.
The poll revealed that 9% of institutions invest in all six alternative asset classes, a fifth have exposure to five or more, and over a third (34%) invest in four or more. A year ago, only a quarter of respondents invested in at least four asset classes, and just 13% had exposure to five or more separate markets.
Other highlights from the report:
“Preqin’s investor surveys demonstrate the considerable appetite for alternative assets within the investor community, with many looking to ramp up their participation within these markets,” said Andrew Moylan, Preqin’s head of real estate products, in the statement. “It is notable that although the proportion of investors that are not involved in the alternatives industry has remained relatively consistent, those with exposure are now expanding and diversifying their exposure to different asset classes.”
While the private equity and hedge fund markets are large, well-established industries, sectors such as unlisted infrastructure and private debt have seen robust expansion in the past few years,” Moylan added. “This has been driven by sustained investor appetite, in part due to these asset classes’ ability to outperform public markets over the long term.”
Founded in 2003, Preqin is a leading source of information for the alternative assets industry, providing data and analysis via online databases, publications and bespoke data requests. More than 40,000 professionals in 90 nations use the company’s products.