Private Equity \u2013 A Competitive and Sophisticated Market:<\/strong><\/p>\n Hedge Funds \u2013 Value Under the Spotlight:<\/strong><\/p>\n Real Estate \u2013 Rising Prices and Competition for Assets:<\/strong><\/p>\n Infrastructure \u2013 Increasing Sophistication of Investors:<\/strong><\/p>\n According to Mark O\u2019Hare \u2013 CEO, Preqin, \u201cThe alternative assets industry has reached $7 trillion in assets in 2014. The past year has seen significant growth in The recent news of CalPERS cutting hedge funds and reducing the number of private equity partnerships within their\n
\nand infrastructure funds), up from $3.5tn as of June 2013.<\/li>\n
\nsurpass the $561bn of capital returned to investors throughout the whole of 2013.<\/li>\n
\nyear ago.<\/li>\n<\/ul>\n\n
\n2011. This compares to average returns of 12.25% seen in 2013.<\/li>\n
\nalternative assets, from $2.66tn at the end of 2013 to just under $3.02tn.<\/li>\n
\nnaming performance and fees as the key issues facing the industry over the coming year.<\/li>\n<\/ul>\n\n
\npredominantly by improving valuations of unrealized assets.<\/li>\n
\nfind attractive investment opportunities at suitable prices in the current market compared to 12 months ago.<\/li>\n
\nreal estate funds reaching 16.7% over the past three years.<\/li>\n<\/ul>\n\n
\nexpressing an interest in making direct investments into infrastructure assets over the coming year.<\/li>\n![\"alternative_assets_industry_in_2014.png\"](\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2015\/01\/alternative_assets_industry_in_2014.png\")
<\/p>\n
\nthe assets held by alternatives managers, most notably in the value of unrealized assets in manager portfolios. Even with the sub-par performance seen by hedge funds over the course of the year, these managers witnessed the largest
\ngrowth in their asset base as investors looked to the true value investments in hedge funds can bring.<\/p>\n
\nportfolio does not reflect the wider sentiment in the industry. From our conversations with investors, the majority of
\ninvestors remain confident in the ability of alternative assets to help achieve portfolio objectives. Indeed, across all
\nasset classes a much larger proportion of investors plan to increase their exposure rather than cut back their
\nallocations to alternatives. However, as the investor base for alternative assets grows and becomes more
\nsophisticated, fund managers continue to face the challenge of how to attract this new capital. Those fund managers
\nthat continue to innovate with new products and solutions, as well as listening to investor demands for better
\nalignment of interests and lower fees, may well be winners in 2015.\u201d<\/em>
<\/a>\n\t\t\t<\/div><\/figure>\n\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":"