Allocations To Alternatives Jump
Capital allocations to alternative investments by global asset managers jumped to about $144 billion in 2022 from about $130 billion in the prior year, says a report commissioned by Vidrio Financial. By specific asset classes, inflows into private equity/venture capital slowed to $61.6 billion in 2022 from $64 billion in 2021, while inflows into credit and real estate remained stable at about $27 billion each. However, inflows into hedge funds jumped to $16.6 billion in 2022 from $8 billion in 2021. Flows into infrastructure and real assets totaled $7.3 billion and $4.9 billion, respectively, in 2022. While allocations to private equity have "slowed slightly" from last year, the report says interest in private credit interest is "running high" from allocators as well as from fund managers as many hedge funds and private equity firms are investing in the sector. The report also sees the markets align in the shift away from the 60/40 asset mix, moving towards a more equal mix between public and private investments.