Private funds are on the rise, Ocorian study says
23 September 2022 Jersey
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78 per cent of institutional investors focusing on alternative investments expect to see an increase in funds listings over 2022 and 2023, according to a recent Ocorian study.
The study, executed by independent research company PureProfile, interviewed more than 100 senior executives and fund managers in the US and the UK between June and July 2022.
In the US and UK, 28 per cent of alternative-focused institutional investors predict a significant increase in funds, the study finds, with 15 per cent concerned that current global crises will have a negative impact on the market.
For investors focused on real estate, private debt, and infrastructure, the consideration of ESG was highlighted as an important factor when listing funds. Only nine per cent of investors in these markets say that listings can be achieved without an ESG focus, the study says.
As a result of a growing ESG focus, regulatory changes, and increased costs, the study predicts that alternative asset managers may turn to private fund raising rather than going through institutional investors. Approximately 84 percent of those surveyed expected this approach to increase over the next 18 months.
Gerry Warwick, director of fund services in the UK and Ireland at Ocorian, says: “Despite current market conditions and growing macroeconomic challenges, there is confidence about listings, which is reflected in the pent-up demand we are seeing.
“The last quarter of this year and next year could be very busy, which may mean funds which are ready to list earlier may benefit. That said, there are still concerns about the requirements for listing, and that is driving interest in private fund raising.”
The study, executed by independent research company PureProfile, interviewed more than 100 senior executives and fund managers in the US and the UK between June and July 2022.
In the US and UK, 28 per cent of alternative-focused institutional investors predict a significant increase in funds, the study finds, with 15 per cent concerned that current global crises will have a negative impact on the market.
For investors focused on real estate, private debt, and infrastructure, the consideration of ESG was highlighted as an important factor when listing funds. Only nine per cent of investors in these markets say that listings can be achieved without an ESG focus, the study says.
As a result of a growing ESG focus, regulatory changes, and increased costs, the study predicts that alternative asset managers may turn to private fund raising rather than going through institutional investors. Approximately 84 percent of those surveyed expected this approach to increase over the next 18 months.
Gerry Warwick, director of fund services in the UK and Ireland at Ocorian, says: “Despite current market conditions and growing macroeconomic challenges, there is confidence about listings, which is reflected in the pent-up demand we are seeing.
“The last quarter of this year and next year could be very busy, which may mean funds which are ready to list earlier may benefit. That said, there are still concerns about the requirements for listing, and that is driving interest in private fund raising.”
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