New Research: Global Alternative Investment Allocations Top $740 Billion for 12-Month Period Ending March 2023

Alternative investments are a growing part of alpha seekers’ portfolios, with an equivalent $2 Billion committed every day around the world found the 2023 Manager Compendium from Alternatives Watch Research and sponsored by Dasseti.

Dasseti and Alternatives Watch Research (“AW Research”) today released its 2023 Manager Compendium research report which shows no slow-down in capital deployed to alternative investments globally.

Following a review of six asset classes across private markets, including private equity, venture capital, hedge funds, private credit, real estate and infrastructure, approximately $746 billion was either deployed or committed during the 12 months ending March 31st 2023.

Summary of key findings:

  • Private equity led the way in fundraising totalling 61% of the overall private market assets raised for the year ending March 31, 2023.
  • Credit strategies, including direct lending, distressed and CLO strategies, were also popular, with $159.8 billion raised during the year -- roughly 21% of the overall activity.
  • Firms that raised the largest funds in our survey of the alternative landscape were: Advent International, Blackstone, Thoma Bravo, KKR, I Squared Capital, Clearlake Capital Group, Francisco Partners, Blue Owl Capital and Churchill Asset Management.
  • Largest funds raised for the year were: Advent International GPE X ($25 billion); Blackstone – Strategic Partners IX ($25 billion); Thoma Bravo XV ($24.3 billion); KKR North America XIII ($19 billion); and KKR Global Infrastructure Investors IV ($17 billion).

“We were excited to partner with AW Research on this important report, as our software adds most value to allocators investing in private markets, where data is scarce and perceived risks are higher,”

said Wissem Souissi, CEO and Founder of Dasseti.

“With more allocations flowing into private equity, there is demand from both LPs looking for visibility into GPs and also from GPs collecting data from portfolio companies. Our software is ideally placed to assist both groups.”  he added.

The numbers are positive news for alternative managers, after news reports that allocations were expected to plateau or decline in the volatile 2022 and early 2023 inflationary environment. Private equity also fared particularly well, which made up 61% of all funds raised.

“Institutional investors spent the better part of the last year flocking to private equity as a cure for the traditional equity market blues,”

said Susan Barreto, Editor of AW Research.

“The key thing readers will see in our latest findings is that the private asset bull market has expanded to include credit strategies. Infrastructure and real estate funds also remain popular as rising inflation and interest rates have only fueled mandates for illiquid alpha opportunities.”

Download the full Manager Compendium for 2023

About Alternatives Watch Research:

AW Research is the data- and analysis-driven unit of the daily news platform Alternatives Watch. The team compiles the facts and figures behind the larger trends within the alternative asset management industry. From fund launch and investor mandate data to strategy-specific insights, we seek to offer the most comprehensive view of salient trends in the marketplace today. Content is available exclusively to Annual Subscribers.

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