Research from BNY Mellon has shown that private equity, real estate and infrastructure managers anticipate strong growth in assets in the next five years.
The survey of 340 alternative investment managers found that institutional investor appetite for real assets climb has already been climbing over the last 12 months.
Sixty percent of infrastructure managers, 44% of real estate managers and 39% of private equity managers surveyed expect their assets under management to grow by at least 50% in the next five years.
“Deep-rooted demographic and macro forces are driving an unprecedented need for investment in real assets such as transport facilities, communications networks, housing and hospitals,” said Alan Flanagan, global head of Private Equity and Real Estate Fund Services at BNY Mellon.
“These demands far outstrip the reach of government and public finances, and this creates huge opportunities for private capital to play a part in people’s everyday lives.”
The research also concluded that alternative investment managers believe retail investors will become a more important source of capital in the near future.
According to the results, 46% of private equity and 45% of real estate fund managers believe that in 2020 retail investors will account for more capital raised for investments than they do today.
Demand for real assets set to surge in next five years
Research from BNY Mellon has shown that private equity, real estate and infrastructure managers anticipate strong growth in assets in the next five years.