Four in 10 investors to grow investments in private debt
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Some 40% of institutional investors around the world plan to increase allocations to private debt over the next three years, research has shown.
Based on 247 respondents, more than a third also expect to boost private equity allocations, and about 30% plan to expand allocations to private infrastructure equity.
“Institutional investors seek to secure higher potential returns while diversifying portfolios, protecting against inflation and reducing volatility,” said data and analytics provider Coalition Greenwich in its report, ‘Top Trends in Asset Management for 2024’.
Coalition Greenwich analysis shows that when it comes to private investments, institutional investors do not necessarily have a strong preference for specialist firms.
“They are more than willing to hire generalists for a private market mandate — as long as the generalist manager has dedicated private-market resources that demonstrate expertise and a true commitment to these complex asset classes,” said the report.
“That said, generalists moving into private markets will have to overcome one big advantage held by well-established specialists: institutions’ emphasis on hiring managers with proven track records in navigating long-term market cycles in private credit, private equity and other private assets.”
Separate research by Natixis Investment Managers in December found that UK institutional investors are attracted to private assets, but about half of those surveyed in the UK say “over-regulation” of private markets is making these assets less attractive.
Do you plan to change allocations to private assets this year?
