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Adopting Alts: Investors and their advisers are diving deeper into alternatives, and real assets are the beneficiary of this movement.
Investors are increasingly interested in alternative investments, particularly real assets, and there is no sign that interest will diminish anytime soon. If anything, experts anticipate interest in real assets to increase significantly as more and more investment opportunities become available to retail investors.
However, experts agree that evaluating alternative investments can be challenging. And finding the right alternative investments is difficult, even for sophisticated investors. Nonetheless, net flows in the global alternatives market are expected to grow at an average annual pace of 5 percent during the next five years, according to a recent report by McKinsey & Co.
The rapid growth of alternatives is not simply the result of investors chasing returns, says Ju-Hon Kwek, an associate principal in McKinsey & Co.’s financial services group. He points out that investors are seeking consistent, risk-adjusted returns tha