The Alternative Assets Industry
Where is it heading?
Alternative investments are those that do not fall within traditional asset classes such as stocks, bonds and cash. This definition of alternative assets would therefore include real estate, art, collectibles and wine.
However some alternative assets have a unique feature in that they are only generally accessible to institutions and very wealthy individuals. Some of these have unique fund structures and include real estate, forestry, private equity, secondary funds, private debt funds, A further three asset classes in this group have historically accounted for the lion’s share of capital in the alternative investment world: hedge funds, private equity buyouts and venture capital.
2016 will see a number of trends influence the alternative investment market. These include:
The freer flow of labour, capital and information across the world is creating tremendous opportunities in terms of new investments and new investors
Characterized by new sources of capital, flexible sources of capital. More strategic partnerships are being formed and technology is facilitating new arterial connections to financial actors. Of course regulatory and technical issues are growing commensurately.
Strategic Risk Management
Without necessary risk management procedures in place, alternative asset managers will struggle to succeed in a world that is battling huge cybersecurity threats, market disruptions and heightened regulatory scrutiny.