Key Takeaways
- • Private equity, renewable energy, hedge funds, private debt, and real estate ranked as the top five alternative asset classes expected to capture the largest fundraising increases in 2024, according to Carne Group research surveying over 200 fund managers collectively managing $1.6 trillion.
- • Institutional investors and wealth managers demonstrated strong commitment to alternatives, with 71% of respondents reporting plans to increase private equity allocations by 10% or more in 2024, and 70% planning similar increases in private debt allocations.
- • Survey respondents collectively represented $1.7 trillion in assets under management across pension funds, insurers, family offices, and wealth managers across nine European countries plus the UK.
- • Alternative asset fund managers face mounting pressure from increasing regulatory costs and fundraising challenges, driving expected market consolidation in the sector during 2024.
- • The research was commissioned by Carne Group and conducted between December 2023 and January 2024, capturing manager and investor sentiment ahead of the anticipated capital flow surge.
Summary
Alternative asset classes are positioned to capture substantial capital inflows in 2024, with institutional investors and fund managers signaling robust demand across the sector. Research commissioned by Carne Group and conducted between December 2023 and January 2024 reveals consensus expectations for significant fundraising expansion. The survey encompassed over 200 alternative asset, equity, and fixed income fund managers across 10 countries with combined assets under management of $1.6 trillion, providing a comprehensive view of manager sentiment heading into 2024.
Private equity emerged as the leading asset class expected to attract the largest capital flows, followed by renewable energy, hedge funds, private debt, and real estate. This ranking reflects both the scale of existing capital bases in these categories and anticipated investor appetite for exposure to these markets. The concentration of fundraising expectations in these five categories underscores where alternative asset managers are positioning resources and where capital commitments are most likely to materialize.
Institutional capital commitments reinforce manager expectations. A parallel global study of wealth managers and institutional investors—including pension funds, insurers, and family offices—from the UK, Germany, Switzerland, Italy, France, the Netherlands, Norway, Finland, and Denmark, collectively managing $1.7 trillion in assets, revealed substantial allocation shifts toward alternatives. Notably, 71% of surveyed institutional investors indicated plans to increase private equity allocations by 10% or more during 2024, while 70% reported similar intentions regarding private debt allocations. These reallocation patterns from institutional investors represent meaningful capital supply that would sustain the anticipated fundraising surge.
However, the sector faces structural headwinds that may constrain growth. Alternative asset fund managers report escalating regulatory burdens and fundraising obstacles driving consolidation expectations within the industry. Managers are increasingly turning to specialist third-party service providers to manage regulatory compliance, a trend reflecting both the complexity of regulatory environments across multiple jurisdictions and cost pressures on smaller and mid-sized managers. This consolidation dynamic may reshape competitive dynamics within alternatives in 2024, potentially favoring larger, well-capitalized managers with robust operational infrastructure.
Private equity emerged as the leading asset class expected to attract the largest capital flows, followed by renewable energy, hedge funds, private debt, and real estate. This ranking reflects both the scale of existing capital bases in these categories and anticipated investor appetite for exposure to these markets. The concentration of fundraising expectations in these five categories underscores where alternative asset managers are positioning resources and where capital commitments are most likely to materialize.
Institutional capital commitments reinforce manager expectations. A parallel global study of wealth managers and institutional investors—including pension funds, insurers, and family offices—from the UK, Germany, Switzerland, Italy, France, the Netherlands, Norway, Finland, and Denmark, collectively managing $1.7 trillion in assets, revealed substantial allocation shifts toward alternatives. Notably, 71% of surveyed institutional investors indicated plans to increase private equity allocations by 10% or more during 2024, while 70% reported similar intentions regarding private debt allocations. These reallocation patterns from institutional investors represent meaningful capital supply that would sustain the anticipated fundraising surge.
However, the sector faces structural headwinds that may constrain growth. Alternative asset fund managers report escalating regulatory burdens and fundraising obstacles driving consolidation expectations within the industry. Managers are increasingly turning to specialist third-party service providers to manage regulatory compliance, a trend reflecting both the complexity of regulatory environments across multiple jurisdictions and cost pressures on smaller and mid-sized managers. This consolidation dynamic may reshape competitive dynamics within alternatives in 2024, potentially favoring larger, well-capitalized managers with robust operational infrastructure.
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