From Alternative to Mainstream

Chapter 2: Getting Ready for Growth

From Alternative to Mainstream

Chapter 2: Getting Ready for Growth

October 7, 2021

 

Alternative investments were once a relatively small island in the investment industry, but investor demand for portfolio diversification and higher return potential are moving alternatives into the mainstream.

Download Chapter 2 to better understand how alternative managers will need to adjust to meet the needs of allocators. Intensifying competition is calling for bespoke solutions, more compelling strategies and greater transparency.

BNY Mellon, in conjunction with Mergermarket, surveyed 100 institutional investors and 100 alternative asset managers on their perceptions and expectations, and whether the two sides are aligned.

 

Chapter 2 of this report highlights the strategic priorities of alternative asset managers along with allocators’ concerns, revealing potential hurdles in the investment decision-making process that can impact alignment between managers and investors.

 

Our next chapter will highlight how data, technology and outsourcing are the future of asset management.

The alternative asset managers we surveyed described bespoke solutions, compelling strategies and levels of transparency as sources of their greatest competitive advantages. With these conditions and the broader picture of investor demand in mind, alternative investment managers will have to adjust course to thrive by meeting demand with flexibility.

  • By the Numbers
  • 80%
    of institutional investors consider regulatory changes as highly important in their allocation decisions for private equity
  • 100%
    of survey respondents say that the opportunity to co-invest is highly or somewhat important
  • 65%
    are introducing changes to their operating model because of the pandemic

* As identified by survey respondents

Revisit Previous Chapters: From Alternative to Mainstream Series

Related


Securities Services for Alternative Asset Managers


Asset Management: Transformation is Already Here


 

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