In a recent report, J.P. Morgan details the outlook for the alternative investment universe in 2024.
Though the share of alternatives in the total asset universe subsided to 14.9 percent at the end of 2023, compared to 15.5 percent at the end of 2022, “Fundraising for alternative asset classes in 2023 was very much in line with pre-pandemic levels and remains elevated by historical standards, pointing to still-resilient demand,” said Nikolaos Panigirtzoglou, global markets strategist at J.P. Morgan.
“Fundraising has also had a strong start to the year, which if sustained would make 2024 a significantly stronger year than 2023,” Panigirtzoglou added.
The report postulates that private credit spreads will likely narrow in 2024 as competition increases.
“The expectation throughout 2024 is for many private credit deals to be refinanced via the syndicate