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World’s largest allocators added $130bn to private markets last year, says Vidrio research

Mandate activity among the largest institutional investors soared in 2021 across private equity, private credit, real estate and infrastructure, and hedge funds, according to research commissioned by Vidrio Financial, a provider of software and integrated data services solutions for institutional alternative allocators globally.

The second annual Alternatives Watch Research Investor Compendium tracked in 2021 a total of $130bn in new capital across more than 900 individual Institutional investor mandates of 50 of the top allocators to alternatives.

The report ranks the activity of some of the largest pension plan allocators by alternative asset class and provides a snapshot of some of the most popular managers and funds attracting institutional capital today.

Investment gains were historic in 2021 and among the top 10 allocators to alternative investments annualised investment gains spanned 12% to 34%. The new investment commitments put to work, by the largest US public pensions, averaged from $5bn to $17bn.

The total new assets put to work in alternatives last year, exceeds that of 2020 by approximately $30bn.

Private equity remains the most popular alternative asset class among institutional investors with more than 500 funds selected for a total of $64bn in new capital.

Real estate/infrastructure funds meanwhile, attracted $27bn as did credit funds last year, while hedge fund strategies saw only $8bn from the largest institutional investors

Eyeing four key alternative asset classes, the research looked to see which firms won the greatest amount of assets and topping the rankings were Hellman & Friedman (private equity); Brookfield Asset Management (real estate/infrastructure); Ares Management (credit); and fund of hedge funds K2 Advisors (hedge funds).

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