Alt Fund Managers Optimistic on Capital Raise Over Next 18 Months
According to new research from Ocorian, a provider of alternative fund services, alternative fund managers are optimistic about the next 18 months, with nearly all (98%) confident about launching new funds and 81% expecting fundraising to be higher than in the previous 18 months.
Nearly 69% of fund managers are cautiously optimistic, expecting a somewhat higher level of fundraising, while 12% anticipate it will be significantly higher. Only 18% believe it will be roughly the same, while 1% believe it will be lower.
Of the 98% who are confident in their ability to successfully launch new funds in the next 18 months, 52% say they are very confident, while 46% are quite confident.
According to the study of 100 alternative fund managers across the world, 91% of alternative fund managers believe there will be more alternative asset fund launches this year than in 2022; 28% anticipate significantly more alternative asset fund launches; and 63% anticipate slightly higher launches. Only 8% believe it will be roughly the same, while 1% believe it will be lower.
“While it’s still a challenging economic environment and with a number of geopolitical issues making fund raising more difficult in some markets, it’s encouraging to see how positive alternative fund managers are feeling about the year ahead, predicting both higher levels of fund launches and more capital being raised overall,” Paul Spendiff, Head of Business Development, Fund Services at Ocorian said.
And it’s not simply a boost in confidence in successfully launching new funds; the figures reflect the ability to attract capital, with 96% forecasting that more capital will be raised in 2023 than last year. Around 40% of those polled believe there will be more money raised this year than last, with the remaining 39% expecting between 10% and 25% more. Around 17% anticipate an increase of up to 10%.
The top five asset classes from which alternative fund managers expect the most benefit from fundraising in the next 18 months are: private equity (73%), infrastructure (68%), real estate (65%), private debt (59%) and hedge funds (49%).