Alternatives Q3 2024 Update

Key takeaways:

• The fundraising environment for alternative asset classes has been challenging since rates began to rise in 2022, with deal-making and exits at low levels. However, we are beginning to see private credit and infrastructure fundraising bounce back, as well as fundraising for the largest funds
• We investigated the question of size for infrastructure equity funds. Smaller funds, which target mid-market assets, benefit from less competition, more opportunities for value creation, and compelling exit opportunities, and can therefore offer potentially more attractive returns for investors
• While listed real estate has experienced a sluggish H1 2024, despite some sectors where we see attractive fundamentals, private real estate has begun to experience signs of reopening and we expect investment volumes to pick up
• The volatile markets have provided opportunties for hedge funds; we are positive on multi-PM and discretionary macro strategies, while CTA and managed futures strategies lagged their peers