European, Asian Fund Buyers Think Clients Don't Love "Private Alternatives" Enough – Survey

Tom Burroughes

12 July 2024

Most fund buyers in Asia and Europe think that clients don’t have enough exposure to “private alternatives” – private equity, credit, forms of property and other assets – according to a survey this week from .

PGIM, which has $1.34 trillion in assets under management (as of 31 March 2024), operates across a range of fields, including alternative investments.

In Asia, 76 per cent of fund buyers say clients are underinvested in private market strategies, compared with 64 per cent in Europe. To encourage a shift, such gatekeepers want more attractive fee structures, more transparency about these assets, and easier access.

Encouraged by more than a decade of ultra-low interest rates, a shift from public to unlisted corporate structures, and the rise of “passive,” index-tracking entities such as ETFs, investment houses have piled into the private markets space where they can earn higher fees.

For the buying side, the illiquidity premium for holding non-public assets is an attraction. There are question marks, however. The the same way,” Shafer said.

Close correlations between equities and bonds, PGIM said, encourage 43 per cent of gatekeepers to seek diversification, with 41 per cent identifying private alternatives as the top asset class.