Global allocators upped their alternative asset allocations – private equity, credit, real estate, real assets, infrastructure and hedge funds – to $172bn in 2023 a 19% increase from the $144bn seen in the previous year, according to a research commissioned by Vidrio Financial.
The latest edition of Vidrio’s Alternatives Watch Research Investor Compendium, which tracked $144bn across over 1,000 investor mandates, reveals a strong uptick in the amount of alternative investment form some of the world’s largest institutional investors.
Most of the capital in 2023 still went to private equity and venture capital, however, which accounted for 43% of the total alternative investment capital put to work among the investors included in this year’s compendium. Private real estate strategies attracted 19.4% of the overall mandates, while private credit strategies accounted for 18.8% of the overall capital inflows.
Vidrio’s outlook on the alternative investment industry for 2024 continues much in the same way as 2023. Investors’ appetite will still favour private market opportunities over liquid alternatives and hedge funds with a significant amount of assets being allocated to private credit strategies, as allocators seek to add exposure to the booming asset class.
