The Next Decade of Alternative Investments

From Adolescence to Responsible Citizenship

We are pleased to introduce a new report outlining our thoughts on the future of alternative investments, including a four-point call to action for the industry.

As we enter a new decade, rife with a global pandemic, the most violent bear market in history, and unprecedented uncertainty, alternative investments continue to be a polarizing topic. Yet, further growth in alternatives is expected. Our report covers three important topics: the meteoric rise, current state, and outlook of alternative investments; a deep dive into the growth drivers of the underlying industries and asset classes; and a four-point call to action for the industry that will become our rallying cry in the coming years.

Here are some of the highlights:

percentage of global investible markets

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From Then to Now: A 15-Year Lookback

Highlights:

  • How alternative investments doubled their global market share between 2003 and 2018
  • Why record lows in global interest rates have driven pensions toward alternative investments
survey results rationale

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Why Alternative Investments?

Highlights:

  • CAIA Member rationales for investing in alternative asset classes
  • How alternative assets classes can help responsible investors reap the long-term benefits of both risk mitigation and return enhancement
  • Why value creation continues to shift from public markets to private markets
average dispersion chart

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The Future of Institutional Alternatives

Highlights:

  • Why performance dispersion among managers of alts will make manager due diligence increasingly important
  • The growing popularity of co-investments and the accumulation of dry powder in private equity
  • Major trends in private debt stemming from regulatory changes and an ongoing low-interest rate environment
  • Expectations for hedge fund outperformance during times of weakening stock prices and the anticipated growth of liquid alts
  • The impact of ESG integration on real assets investing

Our Call to Action

CAIA Association is taking the lead with a call to action for our Members and the broader industry. With our four-point agenda below, we hope to change our industry to benefit future generations of workers and savers.

  1. Commit to Education
  2. Embrace Transparency
  3. Advocate for Diversification
  4. Democratize but Protect

Complete this brief form to be emailed a link to the PDF: "THE NEXT DECADE OF ALTERNATIVE INVESTMENTS: From Adolescence to Responsible Citizenship"