Private equity will continue to gain popularity, according to the latest results of a survey of the Chartered Alternative Investment Analyst Association membership.
The findings from the open-ended survey format showed that 22% of respondents said that they expected private equity to continue to attract institutional-class investors, and private equity would have the biggest effect on alternatives next year.
Respondents also said that they expected private-equity and hedge funds to represent the best opportunities in the year ahead, followed by commodities.
The survey, which was conducted in June and included feedback from 400 of the association's 1,100 members, also produced some interesting insight into concerns regarding the credit and mortgage markets, which fell into turmoil this summer.
"There were quite a few people who responded that they anticipated some difficulty in the credit markets, and particularly the subprime-mortgage market," said Craig Asche, executive director of the Amherst, Mass.-based association. The CAIAA was established in 2002 to provide education and credentials to professionals working in various aspects of the alternative-investments industry. The membership, which has doubled annually since the CAIAA's inception, is represented by members in 60 countries.
About half are buy-side money managers, but the membership also includes financial advisers, consultants and third-party marketers. When members were asked to highlight their biggest concerns for the industry, the most popular response, at 15%, was the need for education about alternatives.
"The learning process never ends, especially in this industry," Mr. Asche said. In terms of the threat of a potential tax increase on private-equity gains, he hopes that lawmakers take the time to consider the issue from all sides. "I'd be hard-pressed to make a prediction there," he said, "but I'd hate to see them take the same approach they took in creating Sarbanes-Oxley."