Alternative investment managers worldwide had a record $6 trillion in assets under management as of June 30, adding $600 billion in 2013, according to data released Tuesday by Preqin.
Private equity, which includes private equity-style real estate and infrastructure funds total $3.5 trillion as of June 30, up 9% from a year earlier. Hedge funds had $2.66 trillion, up 16% from a year ago; real estate was $657 billion, up 14% as of June 30, 2012; and infrastructure was $244 billion, up 16% from a year earlier..
And more growth is expected, according to Preqin. Some 46% of infrastructure institutional investors plan to increase their allocations to the asset class over the next 12 months, the largest proportion of any of the asset classes. Of the infrastructure investors expecting to make investments this year, 43% plan to commit at least $100 million. Seventy-one percent of investors in private equity intend to commit to their next private equity fund during 2014.
Thirty-one percent of real estate investors expect to increase their allocations in the next 12 months; real estate, 31%. In private equity, 71% of investors intend to commit capital to private equity in 2014. Also, 57% of investors are preferring to invest in hedge funds that are raising total capital in the range of $1 billion to $5 billion in 2014.