Key Takeaways
- • 98% of alternative fund managers report confidence in launching new funds over the next 18 months, with 52% expressing very high confidence and 46% quite confident, signaling strong near-term industry expansion.
- • 81% of managers expect fundraising to increase over the next 18 months compared to the prior 18-month period, with 40% anticipating over 25% growth and 39% expecting 10-25% growth in capital raised in 2023 versus 2022.
- • 91% of alternative fund managers predict more fund launches in 2023 than 2022, with 28% forecasting significantly higher activity and 63% expecting modest increases, reflecting broad market recovery confidence.
- • Private equity dominates capital allocation priorities at 73% of manager expectations, followed by infrastructure (68%), real estate (65%), private debt (59%), and hedge funds (49%) as top beneficiaries of fundraising activity.
- • 96% of managers forecast higher total capital raised in 2023 compared to 2022, indicating institutional and investor appetite recovery across alternative asset classes after prior period constraints.
Summary
Alternative fund managers are displaying strong optimism about capital raising and fund launches over the next 18 months, according to research conducted by Ocorian Fund Services, a specialist provider of alternative fund administration globally. The data reflects a marked reversal in sentiment compared to the previous 18-month period, with nearly universal confidence across the sector regarding both fundraising capacity and the ability to successfully launch new vehicles.
The research reveals that 81% of alternative fund managers anticipate fundraising will be higher in the next 18 months relative to the prior 18-month period. Within this cohort, 69% characterize themselves as cautiously optimistic, expecting slightly elevated fundraising levels, while 12% believe capital raising will increase dramatically. Only 18% of respondents expect fundraising to remain flat, with just 1% predicting a decline. When specifically examining 2023 performance versus 2022, 96% of managers predict increased capital raises, with 40% expecting gains exceeding 25% and 39% forecasting increases between 10% and 25%.
Fund launch activity mirrors this optimistic trajectory. Among the 98% of managers confident in their ability to successfully launch new funds within 18 months, 52% report very high confidence while 46% express moderate confidence. Looking specifically at 2023 versus 2022, 91% of respondents predict more alternative asset fund launches this year, with 28% forecasting significantly higher activity and 63% expecting slight increases. Only 8% anticipate launch levels will remain unchanged, and 1% predict a decline.
Asset class preferences reveal clear capital allocation priorities. Private equity commands the highest expected fundraising benefit at 73% of respondents, followed by infrastructure (68%), real estate (65%), private debt (59%), and hedge funds (49%). This distribution underscores institutional investor appetite for yield-generating and diversification-oriented strategies amid evolving macroeconomic conditions.
The collective findings indicate broad-based market recovery confidence across the alternative investment sector, with managers positioning for substantial growth in both fund launches and institutional capital deployment over the medium term.
The research reveals that 81% of alternative fund managers anticipate fundraising will be higher in the next 18 months relative to the prior 18-month period. Within this cohort, 69% characterize themselves as cautiously optimistic, expecting slightly elevated fundraising levels, while 12% believe capital raising will increase dramatically. Only 18% of respondents expect fundraising to remain flat, with just 1% predicting a decline. When specifically examining 2023 performance versus 2022, 96% of managers predict increased capital raises, with 40% expecting gains exceeding 25% and 39% forecasting increases between 10% and 25%.
Fund launch activity mirrors this optimistic trajectory. Among the 98% of managers confident in their ability to successfully launch new funds within 18 months, 52% report very high confidence while 46% express moderate confidence. Looking specifically at 2023 versus 2022, 91% of respondents predict more alternative asset fund launches this year, with 28% forecasting significantly higher activity and 63% expecting slight increases. Only 8% anticipate launch levels will remain unchanged, and 1% predict a decline.
Asset class preferences reveal clear capital allocation priorities. Private equity commands the highest expected fundraising benefit at 73% of respondents, followed by infrastructure (68%), real estate (65%), private debt (59%), and hedge funds (49%). This distribution underscores institutional investor appetite for yield-generating and diversification-oriented strategies amid evolving macroeconomic conditions.
The collective findings indicate broad-based market recovery confidence across the alternative investment sector, with managers positioning for substantial growth in both fund launches and institutional capital deployment over the medium term.
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