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Alt fund managers optimistic about launches and capital raising

Alternative fund managers are optimistic about the next 18 months, with almost all (98%) confident about launching new funds and eight in ten (81%) expecting fundraising to be higher in the next next year and a half than in the previous 18 months, according to new research form Ocorian.

Some 69% of fund managers are cautiously optimistic stating they are expecting to see a slightly higher level of fundraising, whereas 12% believe it will be dramatically higher. Just 18% say it will be about the same and 1% say it will be lower.

Of the 98% who are confident in their ability to successfully launch new funds in the next 18 months, 52% say they are very confident, while 46% are quite confident. 

The research from the team at Ocorian Fund Services, which specialises in administrating alternative asset funds globally, shows that 91% of alternative fund managers predict there will be more alternative asset fund launches this year compared to 2022. Of these, 28% predict there will be significantly more alternative asset fund launches while 63% predict launches will be slightly higher. Around one in 12 (8%) predict it will be about the same, and just 1% think it will be lower.

And it’s not just about a rise in confidence to successfully launch new funds, the statistics are reflected in the ability to raise capital with 96% predicting that more capital will be raised in 2023 compared to last year. Around two out of five (40%) of those surveyed think there will be over 25% more capital raised this year compared to last year, and a further 39% think there will be between 10% and 25% more.  Around 17% believe there will be up to 10% more.

When asked to pick the top five asset classes that alternative fund managers expect to benefit the most from fundraising over the next 18 months, 73% selected private equity, followed by infrastructure (68%), real estate (65%), private debt (59%), and hedge funds (49%). 

When specifically asked how fund raising will change in the next 18 months for certain alternative asset classes when compared to the last 18 months, real estate, private equity and private debt are expected to increase the most.

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