From Alternative to Mainstream

Chapter 4: Looking Towards the Future 

From Alternative to Mainstream

Chapter 4: Looking Towards the Future 

January 2022

 

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 4 to learn about sources of capital transforming the industry and discover areas where managers can expect the next big market opportunities.

As market forces pressure alternative asset managers to increase operational efficiency, the largest will become larger, while specialist managers will attract capital from investors seeking to fine-tune their alternative asset exposure. Investors increasingly seek options that offer greater control than pooled vehicles, as well as lower fees and more transparency.

 

As a result, greater digitization is critical for managers to achieve their objectives for operational efficiency, data management and serving rising market participation of “digitally native” investors. Managers and service providers need to work together to solve for the challenges that the retail market poses.

 

BNY Mellon, in conjunction with Mergermarket, surveyed 100 institutional investors and 100 alternative asset managers on their perceptions and expectations about future alternative asset allocations and their views on various sub-asset classes, and whether the two sides are aligned.

“Alternative asset managers face a complex mix of opportunities and challenges presented by strong investor appetite for diversification, as well as broader industry pressures.”  

— James Slater, Global Head of Client Coverage, BNY Mellon

  • By the Numbers
  • 77%
    of survey respondents are employing product expansion strategies to target investor classes where they expect the most growth*
  • 83%
    of respondents are expecting growth from pension fund investors and insurance companies*
  • 50%
    see increased competition and new market entrants as forces driving structural change*

* As identified by survey respondents

Discover more in the From Alternative to Mainstream survey research series.

Related


Securities Services for Alternative Asset Managers


 

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