Answer to Question #185264 in Management for Rugi

Question

What are six reason why global alternative assets under management have reached a record high level in recent years.

Answer 1

Alternative assets are well known as an attractive way to diversify and enhance returns, but as market conditions change and investment options shift, investors and asset managers should reexamine their approach and question longstanding assumptions. The assets have reached a global high record because the money in private equity and real assets is increasing competition, driving acquisition prices up and, therefore, driving returns down. Private debt has also increased, and it is accompanied by high levels of satisfaction. Real estate businesses have increased and investors are assuming more risks. Further, investors are taking hedge funds, driving global alternative assets. A growing number of investors today are seeking to take advantage of impact investing opportunities that will help shape and accelerate the world’s recovery from global crises, which has heightened the need for impact investing. Opportunities exist in such wide-ranging areas as healthcare, urban development, education, food and agriculture, energy, and the environment.