Advisors anticipate greater demand for private market investments and hedge fund strategies.

Demand for private market and hedge fund strategies is expected to increase during the next 12 to 18 months, according to iCapital Network ’s second annual client survey, conducted with Naissance.
 
Within private markets, respondents anticipate heightened demand for distressed investing (51%), real estate (48%) and impact investing (31%). The most in-demand hedge fund strategies were anticipated to be long-short equity (37%) and multi-manager (35%).
 

The respondents included registered investment advisors, chief investment officers, and professionals in research and due diligence, portfolio construction, and business development.

Other private markets strategies likely to experience higher demand according to respondents include multi-manager strategies (30%), leveraged buyouts (17%), and mezzanine financing (14%). Within hedge funds, the respondents anticipate a growing appetite for event driven (24%), global macro/Commodity Trading Advisors (16%), and international long-short (15%) strategies.

Adoption of certain alternative investment strategies by repeat survey respondents declined slightly between 2020 and 2019, while the average allocation to the asset class remained steady at less than 20%.

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(1) Institutional Capital Network, Inc., and affiliates (herein “iCapital Network”)
(2) Survey of 250 investment professionals conducted by iCapital Network and Naissance, November 2020. Respondents included registered investment advisors, chief investment officers, and professionals in research and due diligence, portfolio construction, and business development.


IMPORTANT INFORMATION

This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security offered by Institutional Capital Network, Inc. or its affiliates (together “iCapital Network”). Past performance is not indicative of future results. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. An investment in an alternative investment entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. The information contained herein is subject to change and is also incomplete. This industry information and its importance is an opinion only and should not be relied upon as the only important information available. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed, and iCapital Network assumes no liability for the information provided.

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Diane Frankenfield

Diane Frankenfield

Diane is a Managing Director and Chief Marketing Officer at iCapital. Prior to joining, Ms. Frankenfield was Managing Director, Head of U.S. Marketing at Legg Mason. She has a BS in Finance from Pennsylvania State University and an MBA, Business and Industry Economics, from Bentley University and holds FINRA Series 7, 24 and 63 licenses. Additionally, Diane is a Harvard University-certified instructor in business negotiations. See Full Bio.