Seward & Kissel’s first-ever Alternative Investment Allocator Survey analyzes the views of personnel who work at various types of investment allocators, irrespective of location or the amount of investable assets. Based on the number and variety of participants, we believe that the Survey results provide informative benchmarking data that will be useful as the industry emerges from the current environment.
- Allocators showed increased interest for less liquid strategies as private credit, private equity and venture capital strategies accounted for three of the top four strategies of interest for which participants anticipated increased allocations in 2021, followed by equity hedge.
- Of the different ways that allocators invest, direct fund investments were the most popular across all investor groups, with 86% of respondents using them, followed by separately managed accounts at 30%, and co-investments at 28%.
- Over 60% of participants indicated that their firms do not currently allocate to cryptocurrency or futures strategies, while over 40% also indicated they do not have allocations to quantitative, macro, or infrastructure strategies.
- Asked to identify their organizations’ most important consideration in making allocations, respondents cited investment strategy/process most frequently (86%), followed by manager’s track record (55%), and pedigree (53%).
- About three-quarters of respondents cited favorable fees as the most sought-after term when negotiating side letters, well more than any other request.
To download a copy of the Survey, please complete and submit the form below.