A heady brew of returns and fundraising success gave a lift to alternative managers' assets, but only three sectors saw double-digit growth in 2017.
Even so, the current survey results tell a far happier tale than in 2016, when managers in all but four alternative investment asset classes tracked by Pensions & Investments annual survey lost assets.
Five alternative investment sectors witnessed aggregate declines in U.S. institutional tax-exempt assets under management as of Dec. 31, P&I's annual money manager survey showed.
Areas with the highest increases in AUM were infrastructure, up 37%; commodities, 19%; and collateralized debt obligations, 18.8%. Other areas showing gains during 2017 were private equity, up 9.7%; privately placed debt, 9%; real estate equity, 8.5%; and buyout funds, 7.8%. However, the private equity sector gains are all from small bases.
This year, in the real asset sector, aside from infrastructure and real estate, master limited partnerships was the only subasset class with AUM growth, ticking up 1.8%, while energy dropped 11.5% and timber was down 3.6%.