2024’s Biggest Investment Trends in Alternative Assets

Resilient Fundraising in Alternatives

Fundraising for alternative asset classes made a strong comeback in 2024, bouncing back from 2023’s underperformance. Levels over the last year were significantly higher, reflecting investor confidence.

Strategic partnerships played a key role, with 53% of traditional asset managers working with alternative providers and 50% planning to increase these collaborations. This growing reliance on alts highlights their importance in diversifying portfolios.

Private Equity Adapts and Innovates

After a tough few years marked by geopolitical challenges, private equity showed signs of recovery in 2024. Innovative strategies have been used to boost returns, like co-investment structures—where investors directly invest alongside funds.

However, some skepticism remains around financial practices, like distributions to paid-in capital (DPI) and NAV loans. These trends could reflect a market finding its footing while moving through and with challenges, offering cautious optimism for investors exploring private equity.

U.S. Economy Achieves Rare Balance The U.S. economy struck a delicate balance in 2024 with strong GDP growth, low unemployment, and cooling inflation.

These gains were fueled by improved labor force dynamics and productivity growth over the past year. This stable environment has boosted confidence across markets, creating fertile ground for long-term investments in areas like private credit, real estate, and equities.

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