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%.
(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.
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