• Blog
  • 1 Min Read
  • May 30, 2024

Alternative Investments Take Center Stage: 2024 State of Alternatives Study Shows Institutional Portfolios Heavily Favoring Non-Traditional Assets 

The 2024 State of Alternatives study provides crucial insights into the emerging trends, opportunities, and challenges confronting asset managers in the realm of alternative investments. With over 230 participants from various sectors holding a combined $10 trillion in assets under management, this study sheds light on the pivotal factors that will influence the alternative investments landscape from the short to long term. 

What are the topline takeaways? Firstly, alternative investments have captivated the interest of institutional investors, who are now gearing up to increase their exposure. An impressive 55% percent of respondents intend to increase their alternative investments over the next five years. This finding underscores the growing recognition for potentially higher returns and portfolio diversification that alternative investments can offer. 

The next key insight relates to regulatory complexity. While institutional investors are eager to tap into the alternative investments market, regulatory complexity continues to pose a significant hurdle. A notable one-third of those surveyed (34%) identified regulatory complexities as the leading barrier to investing in alternatives. This finding suggests the need for improved guidance and greater clarity to enable effective participation in this asset class. 

And third, the study highlights the escalating operational challenges associated with the rising popularity of alternative investments. Data standardization (28%) and management/client reporting (19%) are flagged as the most pressing areas in need of improvement. These data points emphasize the vital role that advanced technology can play in streamlining operations and enhancing reporting accuracy. Institutional investors are actively in pursuit of better resources and technologies to manage their alternative investment portfolios with greater efficiency. 

Download the full report to learn more.