GRAPHIC OF THE MONTH : Growth in Alternative Asset Investments Globally
Investing in alternatives offers investors a range beyond what is available on public markets . The scope is broad and encompasses , among others , Private Equity ( venture capital / growth equity etc .), Debt Investing ( private / distressed 47debt ), Hedge Funds ( managed funds ), Commodities ( oil , precious metals etc .), Collectibles ( whiskey / art etc .) and Real Estate ( properties / development projects ). In short , much to choose from . The increase in demand globally over the last couple of decades has been meteoric – prior to the 2008 Global Financial Crisis the alternatives industry managed around $ 2.2 trillion AUM ( Assets Under Management ) with this demand expected to rise to $ 17.2 trillion AUM by 2025 . ( Sawhney , 2022 ).
Interestingly , the average retail investor has viewed alternative assets with scepticism , preferring the exposure to traditional investment offerings . In contrast , ‘ alternatives ’ have been staples in the portfolios of high-net-worth investors for an exceptionally long time . So , why has it taken so long for others to catch on ? One of the answers may lie in accessibility , with the barriers to entry to such investments decreasing constantly . Now , the average investor really has some choices should they be intent on winning the battle against inflation . And with the growth in demand being witnessed in the alternatives space it seems this message is getting across . It certainly looks as though Alternative Investments are fast becoming the ‘ go-to ’ option to supplement a cohesive investment strategy .
GRAPHIC OF THE MONTH : Growth in Alternative Asset Investments Globally
Compiled by Nick Morgan : Opportunity Private Capital Co-Founder
Opportunity Private Capital ( Pty ) Ltd , is a licensed Financial Services Provider , number FSP53400 .