Fifty-three percent of limited partners plan to increase their allocation to alternatives, down from 56% in 2023 and 55% in 2022, according to a survey of 100 LPs by fintech firm Dynamo Software.
There were more LPs who said they would maintain their current alternatives allocation: 45% in 2024 compared to 37% in 2023 and 41% in 2022.
The survey of LPs and assets allocators with total assets under management ranging from more than $10 billion (46%) to under $1 billion (15%) was conducted in July and August. Limited partners are defined as endowments, foundations, family offices, pension funds, asset allocators, fund-of-funds and insurance companies.
Most LPs surveyed, 78%, plan to primarily invest capital in North America over the next 12 months, up from 71% in 2023 and an increase from 77% in 2022. While 42% of LPs ranked generative AI as a first-priority sector that they would like their technology-focused managers to invest in over the next 12 months in 2024; the percentage was down from 44% in 2023.
