Global surge in alternative asset investment

The investment landscape is experiencing a significant surge in demand for alternative assets, including hedge funds, private equity, and infrastructure. Early reports indicate that fundraising in the first half of 2026 surpassed expectations, driven by strong performance and a preference among asset allocators for newer managers and global strategies.

This trend has extended to private wealth management, where high-net-worth individuals are increasing allocations to alternatives to hedge against market volatility. As the situation evolves, fund managers are increasingly adopting core-satellite asset allocation strategies. Approximately 90% of surveyed managers expect to expand their use of alternative assets over the next three years.

In the private equity sector, competition for quality assets is intensifying, with many firms expecting deal prices to rise. To navigate a difficult exit environment, a majority of firms are holding portfolio companies for five years or longer. Additionally, artificial intelligence is reportedly fundamentally changing investment theses, impacting processes from due diligence to portfolio management.