What $251B in Allocator Mandates Reveals About Alternatives in 2025

In the year to June 2025, allocators deployed a record $251 billion into alternative assets – the highest total on record and a clear signal that institutional investors remain committed to alternatives, particularly illiquid strategies, even in uncertain conditions.

Behind the headline figure, investors are reshaping how they access private markets. Co-investments and secondary transactions are accelerating, liquidity management is tightening, and data is playing a growing role in due diligence. This year’s compendium captures that shift – from passive exposure to active strategy, where allocators balance long-term opportunity with near-term risk.

Key insights:

• Private market momentum: Global private market mandates rose 22% year-on-year to $210B across private equity, credit, real estate, infrastructure, and hedge funds.
• Allocators rethink access: Co-investments and secondaries are reshaping portfolio construction and liquidity management.
• Credit in focus: Allocations to credit climbed 62% from 2023 as institutional investors diversified beyond direct lending.
• Infrastructure and real assets: Capital continues to flow toward AI-driven data centers and renewable energy.
• AI adoption: AI and structured data are beginning to influence how allocators evaluate managers and manage risk.