Despite a predicted boom in allocations to alternative investments including hedge funds, private equity, private credit, and real estate, fundraising has slowed significantly in 2023, according to a report from the Financial Times.
The report cutes data from Preqin as revealing that alternative investment funds have raised $740bn since the start of the year, a fall of 27 per cent from $1.02tn seen in the same period last year.
A Preqin report in 2022 predicted that the sector would double in size between 2021 and 2026, with assets under management reaching $26tn. Alternative funds raised $1.5tn in the whole of 2022.
Volatility, geopolitics and interest rates, which have all impacted markets in the past year, have all been touted as factors in the cooling of institutional investor interest in the alternatives sector.