Preqin Breakfast

Seminar

12 September 2018, London

 About Preqin
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The Future of
Alternatives

Amy Bensted
Head of Fund Manager Products,
Preqin
 Alternative Assets Are Changing

Preqin’s five year look into the future of

alternative assets

 The alternative assets industry of

2018
 Our prediction for growth by
2023
 What we expect to drive this
growth
 Fundraising in 2023
 How to be part of this growth
www.preqin.com
story
Where Are We Now?
 AUM Has Increased Nearly Three-Fold Over The Past Decade

Almost $9tn in AUM across

alternative asset managers

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 Over 11,000 Institutional Investors Active in Alternatives Today

In 2008, just 3,500

institutions invested in
any alternative assets

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How Much Capital
Will Be in Alternative
Assets in 2023?
 Preqin Predicts: $14tn by 2023

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 Taking a Deeper Dive

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What is Driving the
Expected Growth in
Alternatives AUM?
 Private Equity Growth to Outstrip Hedge Funds

Driven by strong investor

appetite for private equity
over the next 5 years

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 Alternatives Have Long Track Record of Adding Yield:
Expectations Continue to be High

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 Private Debt Will be Even More Important in 2023

 AUM has doubled since

the start of the decade

 Expected to double again

over the next 5 years

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 Growing Opportunities in APAC And Emerging Markets

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Fundraising in 2023
 Managers Will Look to the East for Fundraising in 2023

China, in particular, is
expected to be a top
destination for fund
managers on the road in
2023.

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 Family Wealth to Drive Growth in AUM
 Banks, funds of funds, and defined
benefit plans to become less
important
 Pensions, endowments and foundations to continue
to be important
 Sovereign funds, small in number and mighty in
influence

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How to be Part of the
$14n Alternatives
Industry in 2023?
What you should be
thinking about today to be
part of the growth of
tomorrow
 Understand Investor Plans for Routes to Market in the Next 5
Years

 84% of institutional investors plan to

increase their allocation to alternatives
in the next five years

 Managers may be overestimating the

shift out of pooled funds

 Agreement on the opportunity in the co-

investment space

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 The Number of Alternative Managers with ESG Policies is
Expected to Double in the Next 5 Years
 Hedge fund managers may need to
reconsider their stance on ESG

 79% of fund managers either have

an ESG policy in place for alternative
assets or plan to in the next five
years

Alternative Managers Plans for ESG Policies

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 Investor Demand is Leading to the Adoption of ESG Policies

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 Fund Managers May Need to Move Faster to Improve Diversity

 56% and 60% of investors and fund managers

respectively believe a diverse workforce is
beneficial to achieving investment objectives

 Over a quarter of investors either have or plan to

have a diversity policy in place for hiring
investment managers in the next five years

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 Invest in Technology and Data

 Fund managers plan to use technology across

their operations over the next 5 years

 89% and 75% of investors and fund managers

respectively believe AI and machine learning will
be more relevant to alternatives in 2023

 43% of fund managers are currently or plan to

use big data processes in the next five years

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 The Future of Alternatives

 We expect alternative assets AUM to hit $14tn in 2023 – but given the tailwinds could go
higher.

 Driven by an evolving ecosystem of investors seeking yield and to diversify risks in

portfolios, as well as new opportunities globally.

 Investment focus will move away from the more developed markets as better opportunities
become available in Asia and Emerging Markets.

 And continued innovation by alternative managers leading to new products.

 ESG and technology will continue to have significant impacts on the industry.

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 Thank You to Our Contributors
 Alter Domus
 Aksia LLC
 AXA Investment Managers
 Backstop Solutions
 BNP Paribas Asset Management
 Campbell Lutyens
 Capital Dynamics
 Credit Suisse
 Eaton Partners
 EQT
 Fortius
 Golden Gate Ventures
 Hone Capital
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 Institutional Limited Partners
Association (ILPA)
 Kirkland & Ellis
 KPMG
 LaSalle Investment Management
 Magna Entertainment Partners
 Monroe Capital
 National Pension Service of Korea
 Pantheon
 SEI Investment Manager Services
 State Street
 Stirling Infrastructure
 Panel Discussion

Moderator:

Mark O’Hare, Chief Executive Officer, Preqin

Panelists:

Dr Peter Hobbs, Managing Director, Private Markets, bfinance

Bob Brown, Global Co-Head - Private Funds Group, Houlihan Lokey
Amala Ejikeme, Partner, Kirkland & Ellis
Toni Vainio, Principal, Pantheon

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Closing Remarks

Edmond Ho
Chief Revenue Officer, Preqin
 Introducing Preqin
Pro
Your key to unlock the potential of
alternatives
Preqin
Solutions
Seamlessly build and manage
your portfolio
 Upcoming Preqin Events

The Future of Alternatives - Preqin Breakfast Seminar, New York

 26 September 2018, University Club

The Future of Alternatives - Preqin Breakfast Seminar, Hong Kong

 11 October 2018, Eaton Club

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The Home of Alternatives