Professional investors and family offices increasingly are turning to illiquid assets, including private debt, in response to the combination of ongoing volatility and rising interest rates and inflation, according to a study by Aeon Investments, which interviewed 100 senior investment and wealth managers working for family offices with a total of $98.4 billion assets under management in the United Kingdom, United States, Switzerland, Germany, Italy and the Nordic region during November 2022
The study found 90 percent expect increased demand from investors for illiquid assets during the next two years. Around 12 percent predict demand will increase dramatically. The key reason is their need to protect from macro uncertainty, with private debt investments often offering strategies providing a floating-rate coupon that has the potential to be a natural hedge against inflation.
Family offices also highlighted that private debt offers new investment opportunities and a g