The unlisted market on track to reach new records

The market for alternative assets to stocks and bonds is expected to hit new records this year in Europe, marked by growing demand for infrastructure investments, according to a report released on Wednesday.

The market for alternative assets, ie those invested in hedge funds, private equity, real estate, infrastructure and private debt, “is not only in great shape but he is on his way to reaching new recordsSaid Daniel Lowery, research director at the Preqin research institute. “In the post-pandemic world, where the recovery cycle is just beginning, it is the growth to come that is attracting investors”, He specified during the presentation of the report on the European industry of real and alternative assets, produced in collaboration with the European giant of the management of assets Amundi. Enough to generate a record of alternative assets under management of more than 2,000 billion euros at the end of 2020 (+ 13% compared to 2019), according to the report.

During the first half of 2021, the trend was not denied: 236 billion euros of private capital transactions were recorded in Europe, against 283 billion euros for the whole of 2020. “Some asset classes are experiencing slight difficulties because the strength of the market is not felt uniformly, but if the macroeconomic context remains relatively lenient, the outlook remains very positive», a souligné M. Lowery.

In the first half of 2021 alone, investments in infrastructure (87 billion euros) almost equaled their level for the full year 2020 (91 billion). Demand is particularly strong in telecoms and renewable energies. But in real estate, fundraising has declined in Europe this year, “investors seeking clarityOn the evolution of offices in the post-pandemic context. The “private equityOr private equity (investment in private unlisted companies), the main segment of alternative assets, accounts for around 42% of all alternative assets under management in Europe, according to Preqin.

The strong fundraising trend of “private equity»Invested in Europe continued in the first half of 2020, reaching 80 billion euros and heading for a new record in 2021.


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