Competition intensifies between asset classes

With more investors increasing allocations to private equity and other alternative asset classes, largely at the expense of traditional hedge fund offerings, alternative fund managers are examining their strategic priorities and focusing on how to develop products and prepare their businesses for a rapidly evolving future, according to the 2019 EY global alternative fund survey When focusing on the future, where do you look?

The 13th annual survey (formerly the EY global hedge fund survey) found that overall allocations to alternative investments haven’t changed, but the competition is intensifying between asset classes. Continuing a multiyear trend, assets under management (AUM) allocated to hedge funds decreased by 7 percent, while allocations to private equity increased by 7 percent.

The survey also identified expanded interest in private credit and real estate offerings. This shift in allocations has impacted the strategic priorities of alternative manag