Slightly more than half of alternatives investors, 51%, do not expect to make any changes to their private market allocations for the remainder of 2020, according to survey results released Tuesday by placement agency Eaton Partners, a Stifel company.
Eaton Partners conducted the survey between May 13 and May 19. There were 71 survey respondents.
Eighteen percent of respondents expect to cut allocations modestly, while 17% expect to increase allocations modestly. Only 8% of respondents expect to cut allocation significantly, while 6% expect to increase their allocations significantly.
A majority of respondents also seem to feel the biggest fears about private capital markets are overblown, the survey shows.
Fifty-five percent of respondents are not concerned at this time regarding the "denominator effect," in which the lag between public and private market valuations impact investor's ability to make allocation decisions. Thirty-one percent of respondents are somewhat concerned, while only 14% say they are very concerned.
"We are seeing an increased appetite for actionable opportunities among investors looking to take advantage of perceived market dislocations," said Jeffrey J. Eaton, partner at Eaton Partners, in a news release announcing survey results. "Interest in infrastructure continues to grow, particularly in data and IT as well as ESG-focused sectors like renewables, power and water. We also expect to see more opportunities in health care and other mission-critical sectors like technology, mobility and e-commerce."
Private equity is the most appealing for 2020 among survey respondents, with 45% saying it is the most appealing, following by 27% saying private credit, 17% saying hedge funds and 11% saying real assets.
