In anticipation of likely stock market volatility, family offices, wealth managers and other institutional investors are increasingly looking to alternative assets, according to the global fund manager Carne Group.
About 88% of senior leaders surveyed by Carne Group say their organization’s appetite for risk will be higher this year, with 11% saying it will be much higher.
Of the asset classes they prefer:
- Hedge funds 65%
- Venture capital 57%
- Private equity 56%
- Renewable energy 55%
- Private debt 30%
- Real estate 30%
“Sustained stock market volatility and investors seeking higher returns have driven increased interest in alternative asset classes, which generally show lower levels of correlation to short-term price movements, which is important not only for diversification but also for regulatory purposes,” said Carne CEO John Donohoe.
“The growing focus on alternatives is not a short-term move, either, with institutional investors predicting strong but selective growth in inflows to alternatives over the next five years.”