Top investment considerations for alternative investments 2024 

Institutional investors will continue to face a number of challenges. In this year’s report, we have asked our investment teams to focus on what they believe to be a primary issue for their asset class.

In a dynamic macro environment, private markets allocations are moving from the margins to the mainstream of institutional investor portfolios. Our investment teams share their thoughts on issues driving this market in 2024.

Meanwhile, as identified in our paper Themes and opportunities 2024: An age of agility, we see a number of systemic shifts and regime changes taking shape in the mid-to-long term. The higher cost of capital and lower liquidity, an evolving dynamic between cyclical and structural inflationary forces and accelerating climate risks are affecting the way investors might position for the energy transition, understand their relationship with nature, and approach asset classes in a new inflationary environment.

Indeed, over the past year central banks have aggressively tightened monetary policy to restrictive levels in the developed world as they seek a delicate balance between countering inflation and maintaining financial stability, which is discussed in detail in the Economic and market outlook 2024.

All these developments propose important considerations for investors both in terms of strategy and investment beliefs.