The third annual Alternatives Watch Research Investor Compendium, commissioned by Vidrio Financial, showcases a strong uptick in the amount of alternative investment mandate activity across some of the largest institutional investors.
The 40-plus page report tracks alternative investment allocations totaling $144 billion in 2022 — an increase of over 10% across more than 1,000 individual institutional investor mandates.
“As we saw in this year’s Compendium performance data, Vidrio Financial continues to observe alternative asset classes growing in importance for institutional investment teams who work to take advantage of illiquidity premiums in the private markets while also seeking greater transparency into these types of investments,” added Jabban.
“As large global institutions are seeing the value in greater illiquid markets exposure, we know investors are at a crucial crossroads in 2023 with an emerging set of macro-economic themes to grasp,” said Susan Barreto, editor and founder of Alternatives Watch. “We are closely monitoring a new era in asset management that is going to dramatically impact how institutional investors view return expectations for decades to come.”
Notable insights include:
1. While private equity assets saw a muted slowdown, a pick-up in activity in hedge funds was noted as large institutional players sought to purchase risk mitigating assets throughout the year.
2. New breakouts in infrastructure and real asset strategies have been included to act as inflation hedges.
3. Total private equity and venture capital mandates accounted for over half the mandates in this compendium and were spread out across the world, as investors embraced life sciences and technology sectors.
The report is now available to Vidrio clients and to Alternatives Watch annual subscribers.