Investors positive about growth amid expected market volatility

83% of surveyed fund managers anticipate increased capital flow in 2024, with 8% expecting significant growth, according to fund regulation and governance solutions provider Carne Group’s research.

Among the key findings, 73% of surveyed managers foresee a rise in new fund launches in 2024, with 14% anticipating a substantial increase. Additionally, 62% expect a higher number of segregated accounts launched this year compared to 2023, with 14% predicting a significant uptick.
Private equity emerges as the most anticipated asset class for increased fundraising in 2024, according to a majority of fund managers, followed by renewable energy and hedge funds. Notably, 28% of managers expect a dramatic rise in private equity fundraising, while 50% anticipate a slight increase.

Strategic shifts expected in private markets for 2024

The research also delved into the possibility of fund managers switching to alternative third-party service providers, with 29% considering the shift in the coming year. Flexibility, agility, cost savings, and technology are key factors influencing this trend, especially as industry margins face continued pressure, the research based on insights from over 200 fund managers across 10 countries showed.
23% of those surveyed foresee a dramatic increase in the use of third-party management companies by 2026, citing reasons such as launching diverse product sets, speed to market and ensuring stronger fiduciary management of funds.

UK investors showed confidence at the end of 2023, data reveals

John Donohoe, CEO at Carne Group said: “Alternative asset classes have benefited greatly from recent stock market volatility, which has resulted in a desire for investors to diversify their portfolios more.
Respondents noted that fund managers face a complex regulatory environment with an increasing focus on corporate governance, issues around reporting, fees and expenses as well as operational costs.
“Fund managers are increasingly looking to rely on specialist third parties to provide a range of services for them – from regulatory compliance to specialist expertise in the launch of new products like ETFs and private asset funds.”

 

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