๐๐ก๐๐ญ ๐๐ซ๐ ๐ญ๐ก๐ ๐๐ข๐๐๐๐ซ๐๐ง๐๐๐ฌ ๐ข๐ง ๐ฅ๐จ๐ง๐ -๐ญ๐๐ซ๐ฆ ๐๐ฌ๐ฌ๐๐ญ ๐๐ฅ๐ฅ๐จ๐๐๐ญ๐ข๐จ๐ง ๐๐ฆ๐จ๐ง๐ ๐๐ข๐๐๐๐ซ๐๐ง๐ญ ๐ญ๐ฒ๐ฉ๐๐ฌ ๐จ๐ ๐ข๐ง๐ฌ๐ญ๐ข๐ญ๐ฎ๐ญ๐ข๐จ๐ง๐ฌ?
Endowments and foundations are generally considered to be the most aggressive allocators to private markets, with an average allocation of about 33% of their portfolios, due to long-term horizon, potential for higher returns, diversification benefits, and access to unique investment opportunities.
However, other institutional investors are also increasing their allocations to private markets in search of higher returns. At least they did so in the past few years.
๐นCorporates are ranked second, accounting for 40% of the alternatives market.
๐นFamily offices hold alternatives as more than 50% of their portfolio, putting them in the top position.
Regulated entities like banks and insurers are allocating a tiny portion, up to 10%, of their portfolio due to regulatory constraints, high liquidity needs, and associated risk.
Source: GS Asset Management Outlook 2024 / #AssetAllocation #AlternativeInvestments #WealthManagement
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