Over 1,000 investor mandates were examined to understand where leading strategic allocators were targeting for alternative investments as the pace of those allocations accelerated from 2021.
New York, NY – March 14, 2023 -- The third annual Alternatives Watch Research Investor Compendium commissioned by Vidrio Financial, has been released and showcases a strong uptick in the amount of alternative investment mandate activity across some of the largest institutional investors. In 2021, AW's second annual compendium tracked a total of $130 billion in new capital across more than 900 individual institutional investor mandates from 50 of the top alternative allocators.
Notwithstanding general public market headwinds, new capital alternative allocations in 2022 jumped to $144 billion, an increase of over 10%, across more than 1,000 individual mandates. In this third edition of the Compendium, we saw an increase in investor interest across infrastructure and real asset strategies to the tune of $6.9bn and $4.9bn respectively.
"News cycle reports and what Vidrio Financial is seeing in the markets are aligning in the shift away from the 60/40 asset mix, moving towards a more equal mix between public and private investments," said Mazen Jabban, Chairman and CEO, Vidrio Financial. "As we saw in this year's Compendium performance data, Vidrio Financial continues to observe alternative asset classes growing in importance for institutional investment teams who work to take advantage of illiquidity premiums in the private markets while also seeking greater transparency into these types of investments," he added.
"As large global institutions are seeing the value in greater illiquid markets exposure, we know investors are at a crucial crossroads in 2023 with an emerging set of macro-economic themes to grasp," said Susan Barreto, editor and founder of Alternatives Watch. "We are closely monitoring a new era in asset management that is going to dramatically impact how institutional investors' view return expectations for decades to come."
Key findings in this year's Compendium include:
- While private equity assets saw a muted slowdown, a pick-up in activity in hedge funds was noted as large institutional players sought to purchase risk mitigating assets throughout the year.
- New breakouts in infrastructure and real asset strategies have been included to act as inflation hedges.
- Total private equity and venture capital mandates accounted for over half the mandates in this compendium and were spread out across the world, as investors embraced life sciences and technology sectors.
- and more.
Members of the media can request a full copy of the report by emailing Craig Allen at craig.allen@aacomms.net
Vidrio Financial
Vidrio Financial (www.vidrio.com) is the first Technology Enabled Service for allocators — providing managed data services and portfolio management software to institutional investors globally. Vidrio's multi-asset class data services, analytics, and workflow applications empower allocators to take control of their complex investments and external manager relationships while helping to reduce costs, optimize resources, and mitigate operational risk. Vidrio's success is based on our capacity to efficiently collect and extract layers of external fund manager data across multiple asset classes, enrich that data with dynamic investment analytics, and then deliver the information together with rich analytical tools seamlessly across your critical investment management and stakeholder business reporting processes.
Alternatives Watch Research
Alternatives Watch Research (https://www.alternativeswatch.com/category/research-data/) is a data and analysis business that compiles the facts and figures behind the headlines. These include investor mandate tables, manager asset raising charts and exclusive market analysis of the alternative investment industry.
Media Inquiries:
Craig Allen, Managing Principal
Allen & Associates Communications
P: +1 475 419 4468
craig.allen@aacomms.net
