Real estate fund managers and other alternative fund managers are optimistic about launches and fund raising over the next 18 months, according to new research from Ocorian.
More than eight in ten (81%) say levels of fund raising will be higher over the next 18 months compared to the previous 18-month period.
69% of fund managers are cautiously optimistic stating they are expecting to see a slightly higher level of fundraising, whereas 12% believe it will be dramatically higher. Just 18% say it will be about the same and 1% say it will be lower.
These results are reflected in the confidence of fund managers to launch new funds. Almost all (98%) are confident in the ability of alternative fund managers to successfully launch new funds in the next 18 months, with 52% being very confident and 46% being quite confident.
The research from the team at Ocorian Fund Services, which specialises in administrating alternative asset funds globally shows that 91% of alternative fund managers predict there will be more alternative asset fund launches this year compared to 2022. Of these, 28% predict there will be significantly more alternative asset fund launches while 63% predict launches will be slightly higher. Around one in 12 (8%) predict it will be about the same, and just 1% think it will be lower. And it’s not just about a rise in confidence to successfully launch new funds, the statistics are reflected in the ability to raise capital with 96% predicting that more capital will be raised in 2023 compared to last year.
Around two out of five (40%) of those surveyed think there will be over 25% more capital raised this year compared to last year, and a further 39% think there will be between 10% and 25% more. Around 17% believe there will be up to 10% more.
When asked to pick the top five asset classes that alternative fund managers expect to benefit the most from fundraising over the next 18 months, 73% selected private equity, followed by infrastructure (68%), real estate (65%), private debt (59%), and hedge funds (49%).
When specifically asked how fund raising will change in the next 18 months for certain alternative asset classes when compared to the last 18 months, real estate, private equity and private debt are expected to increase the most.
Table to show how fund raising will change for certain alternative asset classes in the next 18 months, compared to the last 18 months
| Increase dramatically | Increase slightly | Stay the same | Fall slightly | Fall dramatically | |
| Real estate | 36% | 48% | 16% | 0% | 0% |
| Private equity | 43% | 32% | 13% | 9% | 1% |
| Renewable energy | 31% | 33% | 33% | 3% | 0% |
| Venture capital | 18% | 43% | 31% | 7% | 0% |
| Private debt | 26% | 40% | 26% | 8% | 0% |
| Infrastructure | 24% | 36% | 33% | 5% | 1% |
Paul Spendiff, Head of Business Development, Fund Services at Ocorian, said: “2022 was a tough year for the fund management industry, with the number of funds launched and amount of capital raised hitting the lowest levels we’ve seen for many years. While it’s still a challenging economic environment and with a number of geopolitical issues making fund raising more difficult in some markets, it’s encouraging to see how positive alternative fund managers are feeling about the year ahead, predicting both higher levels of fund launches and more capital being raised overall. Despite not being out of the woods yet, we expect to see high performing fund managers with the right strategy, good governance and a transparent approach around ESG will benefit from the improving sentiment in the market.”
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