More than four out of five investors (82%) now commit to at least one alternative asset class. The majority of traders allocate to private collateral, real property and hedge funds – 70%, 64% and 51%respectively. A third of traders each allocate to infrastructure, private debt and natural resources. The mostly cited reason behind buying each alternative asset course is diversification. This varies from 56% of private collateral traders to 73% of real estate and infrastructure investors. Sixty-one percent of traders across all asset classes believe equity markets are in a peak, up from 56%that said so in June 2018. Just 21% believe we are in an expansion stage, down from 27% half a year prior.
In response to their outlook, 26% of private capital investors are putting more capital into the industry, while 10% are drawing back from private capital investments. In the longer term, the net majority of traders across all asset classes plan to increase their allocations to alternative assets. Since the most traders allocate to private equity, I will focus on investors’ outlook for this asset class.
The report states the potential clients for private equity stay positive but prices is at a record level and this is the biggest concern for investors over another a year. What else will probably be worth noting in the Preqin Investor Outlook: Alternative Assets H1 2019? Get back to read last week’s comments on Peloton’s differentiated approach and the Canadian Business Growth Fund.
- Provide unforeseen value
- It would be better