Poll: Almost All Investors Plan to Increase or Maintain Allocation to Alternatives in 2023

Alternative investments FinTech Dynamo Software, in partnership with Alterio Partners, released the results from a new survey, Trends, Challenges, & Insights from Leading General Partners (GPs). During the months of December 2022 and January 2023, Dynamo and Alterio surveyed global decision-makers across the GP landscape. The findings come on the heels of Dynamo’s October 2022 survey of Limited Partners (LPs) and asset allocators.

The GP research, contextualized in the Dynamo Frontline Insight Report, uncovered several noteworthy attitudes, predictions, and strategic plans among firms, such as private equity (PE), venture capital (VC), hedge funds, and real estate, along with other asset managers. Interestingly, the survey also highlighted a few noteworthy disparities in mindset between GPs and LPs.

Investment Strategy

Although mindful of expected market downturns, GPs demonstrated confidence in their existing investment strategies with 68 percent saying they will not further diversify their portfolios in 2023.

Notably, 25 percent of GPs polled said they expect investors to reduce allocation to alternatives. However, LPs polled by Dynamo and Northfield Information Services in October 2022 did not indicate plans to pull back from alternatives. In fact, 96 percent said they would either increase (55%) or maintain (41%) their allocation to alternatives in 2023.

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