The appetite for risk among alternative fund managers is set to expand over the next 12 months as companies focus on acquisition opportunities amid expectations that inflation and interest rates will fall, according to a new research from Ocorian.
Nearly six out of 10 (57%) senior executives questioned in the international study say their organisation’s investment risk appetite will increase in the year ahead – more than double the 25% who say their organisation’s investment risk appetite will fall.
Ocorian’s study among fund managers at private equity, venture capital and real estate companies, shows investment risk appetite this year is expected to be much higher than last year.
The key reason for the rise in investment risk appetite in the year ahead is the belief that pricing around deals will become more attractive. One in five (20%) selected that as one of their top three reasons for an increased investment risk appetite while 16% selected lower inflation and 15% said more opportunities to make distressed acquisitions among their top three.
