11/22/2021 | Press release | Distributed by Public on 11/22/2021 06:19
EY today announced the publication of its 2021 EY Global Alternative Fund Survey, which offers a comprehensive overview of the perspectives from alternative fund managers and the institutional investors who allocate to these asset classes. The 15th annual survey shed light on the topics that will be transforming the industry for years to come, including investors' improved perception of alternative funds; the growing importance of ESG and diversity, equity and inclusion (DEI) considerations; and the industry's view on product and strategy expansion into areas such as digital assets and an increased desire for exposure to private markets.
"Beyond reflecting on how alternative fund managers and their investors addressed the ongoing challenges posed by COVID-19, this research highlights the resilience of our industry and the key transformations that managers and investors are partnering to affect," said Natalie Deak Jaros, EY Global Hedge Fund Co-leader and Americas Wealth & Asset Management Co-leader. "2021 was a year in which the industry invested to build significant momentum around various initiatives that will pay dividends for years to come."
Across the survey's findings, changing investor priorities, perceptions and expectations of alternative funds rang through, with key pillars of the results including:
2021 was a year where the industry embraced new and evolving investment opportunities and themes, leading to increased investment in the alternative fund space.
Funds are transforming strategies and products to fit the changing profile and needs of investors.
A focused ESG strategy is critical to longevity.
The "war on talent" hits the alternative fund space.
"The wealth of topics covered in this report - from the ways that ESG considerations are becoming crucial to a fund's future to how a diverse team and strong talent management is increasingly tied to performance - shows the alternatives funds space is in a time of transformation," said Jun Li, EY Americas Wealth & Asset Management Co-leader. "This report provides an overview of where the industry is today and creates a road map for the themes that will continue to dominate industry conversations in the years to come."
Based on conversations with 210 managers and 54 investors, this report sheds light on today's alternative fund landscape, as well as how emerging trends may shape the future. Specifically, this research contains deep dives on all of the above topics and others, such as the impact of retail on alternatives, relocation strategies, alignment of interests between managers and investors, and the use of technology.
The complete survey is available atey.com/altssurvey.
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About the EY Global Alternative Fund and Investor Survey
The purpose of this study is to record the views and opinions of alternative fund managers and institutional investors globally. Managers and investors were asked to comment on their future and strategies for the decade ahead. Specific topics included industry trends; talent management and diversity; ESG risks and investments; investment strategies; and future views on the industry. From July to September 2021, Greenwich Associates conducted 107 interviews with hedge funds representing over US$1.2t in AUM and 103 interviews with private equity firms representing nearly US$2.7t in AUM, and 54 interviews with institutional investors (funds of funds, pension funds, endowments and foundations) representing approximately US$1t in assets under management.