Alternative Investment Crests the Three Trillion Dollar Mark


July 11, 2013

Total assets managed by the Top 100 alternative investment managers globally reached USD 3.1 trillion in 2012, according to research produced by Towers Watson.


Its latest Global Alternatives Survey revealed that real estate has the greatest share of the Top 100 alternative investment managers with 34% and over USD 1.0 trillion, followed by direct private equity fund managers (23% and USD 717bn), direct hedge funds (20% and USD 612bn), private equity funds of funds (PEFoFs) (10% and USD 315bn), funds of hedge funds (FoHFs) (6% and USD 176bn). Over the past ten years that Towers Watson has been doing this survey, it has seen allocations to alternative assets by a wide range of investors steadily increasing.


“Not only has the appeal of alternative assets broadened to include insurers and sovereign wealth funds, but the range of alternative assets has also increased beyond the likes of real estate and private equity to include direct hedge funds, infrastructure and commodities,” said the report.


The research shows that for the Top 100 managers, North America continues to be the largest destination for alternative capital (46%), with infrastructure as the only exception where more capital is invested in Europe.  Overall, 37% of alternative assets are invested in Europe, 10% in Asia Pacific with 7% being investing in the rest of the world. (Image source: Towers Watson)

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