Private equity is an alternative investment class, describing investment partnerships that purchase and manage companies before selling them on. Those interested in private equity typically need to commit a significant amount of capital for years, meaning that access to this asset class is usually limited to individuals with high net worth and institutions.
Other types of alternative investments include hedge funds, venture capital, managed futures, antiques and art, derivatives contracts, commodities, cryptocurrencies and – often – real estate. Many of these types of alternative investments have now become more accessible for retail investors (through alternative funds), despite being historically aimed at accredited investors and institutions.
New Growth Opportunities
Alternative investment products are experiencing an increase in demand from individual investors. This has encouraged investment managers to be more creative regarding how they structure investment opportunities and access development. In response, managers have developed multi-manager products that allow their clients to have exposure to multiple strategies via a single fund and new business models that favour partnerships between alternative and traditional investment managers.
Making Investment Products More Accessible
With investor interest piqued by new product mixes and fund types, investment managers realise that to shore up sustainable growth a couple of key things need to happen. First, advisor and investor education must be enhanced and, second, fund marketing via more scalable distribution channels needs to be increased. Managers able to nurture relationships with major financial services institutions will be ideally positioned to attract individual investment and boost their brand presence.
What Are the Benefits of Alternative Investments?
Investors often turn to alternative investments as a means to diversify a portfolio and reduce overall risk. Experienced investors in publicly listed private equity firms like Matthew Wolf (Switzerland) know that while generally considered to be a riskier form of investment, this class potentially offers higher returns than traditional investments. Mr Wolf currently owns KKR and Apollo Group, with the thesis for these investments based on the continued growth of alternative investing, which delivers superior returns.
As a professional in this field, Matthew Wolf, Capital Group partner and investment analyst from 2008 to 2023, will understand that alternative investments may provide access to investors not otherwise available, as a result enhancing price stability.
Who Are the Largest Alternative Asset Managers in 2025?
Some of the world’s largest alternative asset managers (by AUM) in 2025 include Blackstone, Brookfield, Hamilton Lane and Apollo Global Management. These firms boast a large portfolio, providing capital to businesses and generating returns for investors. The firms endorse a multi-pronged investment approach to provide excess return to their investors.
