Towers Watson sees $5.7trn in alternative assets
Total global alternative assets have hit $5.7trn, according to the latest research from Towers Watson.
Assets managed by the top 100 managers reached $3.3trn, up from $3.1trn in 2012.
The research covers seven asset classes and seven investor types.
Real estate managers have the largest share of assets – 31% and over $1trn – followed by private equity fund managers – 23% and $753bn – hedge funds – 22% and $724bn – private equity funds of funds (10% and $322bn – funds of hedge funds – 5% and $173bn – and infrastructure and commodities – 2%.
Towers Watson says the figures point to continued growth in alternative assets.
Craig Baker, CIO at Towers Watson, said: “For almost all of the past eleven years of this research we have seen increasing allocations to alternative assets by a wide range of investors. Not only has the appeal of alternative assets broadened to include many more insurers and sovereign wealth funds, but the range of alternative assets has also increased beyond the likes of hedge funds and infrastructure to include real assets, illiquid credit and commodities. It is therefore not surprising that allocations to alternative assets by pension funds, for example, now account for around 18% of all pension fund assets globally, up from 5% fifteen years ago.”
“Pension funds continue to search for new investment opportunities and alternative assets have been an area where they have made, and continue to make, very significant allocations. While remaining an important investor for traditional alternative managers, pension funds are also at the forefront of investing in new alternatives, for example in real assets and illiquid credit. But they are by no means the only type of institutional investor looking for capacity with the top alternatives managers. Demand from insurers, endowments & foundations and sovereign wealth funds is on the up and only going to increase in the future as competition for returns remains fierce.”
Towers Watson’s figures suggest that Macquarie Group, Bridgewater Associated and Blackstone constitute the top three alternative investment managers by assets.
However, the focus of these assets under management vary between the groups.
Macquarie is the biggest infrastructure manager, while Blackstone is the biggest real estate manager and the biggest fund of hedge funds manager, Towers Watson said.
Goldman Sachs is the biggest private equity manager, while the Carlyle Solutions Group is the biggest private equity fund of funds manager. Bridgewater is the biggest hedge fund manager, BlackRock the biggest commodities manager, M&G the biggest illiquid credit manager and Ell Capital Management the biggest manager of real assets.
|The top 25 ranking|
|Position||Name of parent organisation||Main place of domicile||Total AUM $m||Asset Class|
|1||Macquarie Group||Australia||96,347.90||Direct Infrastructure Funds|
|2||Bridgewater Associates||United States||87,108.00||Direct Hedge Funds|
|3||Blackstone||United States||70,405.29||Direct Real Estate Funds|
|4||UBS Global Asset Management||Switzerland||64,096.40||Direct Real Estate Funds|
|5||AXA Real Estate||France||60,936.19||Direct Real Estate Funds|
|6||The Goldman Sachs Group||United States||60,206.00||Direct Private Equity Funds|
|7||TPG Capital***||United States||59,000.00||Direct Private Equity Funds|
|8||J. P. Morgan Asset Management*||United States||59,000.00||Direct Hedge Funds|
|9||Kohlberg Kravis Roberts & Co.||United States||54,845.00||Direct Private Equity Funds|
|10||Blackstone||United States||54,292.90||Funds of Hedge Funds|
|11||CBRE Global Investors||United States||53,700.00||Direct Real Estate Funds|
|12||BlackRock||United States||53,431.30||Direct Commodities Funds|
|13||Apollo Global Management||United States||49,000.00||Direct Private Equity Funds|
|14||LaSalle Investment Management||United States||47,989.00||Direct Real Estate Funds|
|15||Carlyle Solutions Group||United States||47,759.90||Private Equity FoF|
|16||CVC Capital Partners||Luxembourg||42,478.30||Direct Private Equity Funds|
|17||Blackstone||United States||42,400.97||Direct Private Equity Funds|
|18||The Goldman Sachs Group||United States||42,223.50||Private Equity FoF|
|19||J.P. Morgan Asset Management||United States||41,615.70||Direct Real Estate Funds|
|20||Credit Suisse Asset Management||United States||41,178.10||Direct Real Estate Funds|
|21||Och-Ziff Capital Management Group||United States||40,600.00||Direct Hedge Funds|
|22||Principal Global Investors||United States||40,264.70||Direct Real Estate Funds|
|23||Deutsche Asset & Wealth Management||Germany||40,134.20||Direct Real Estate Funds|
|24||Apax Partners**||United Kingdom||40,000.00||Direct Private Equity Funds|
|25||Providence Equity Partners***||United States||40,000.00||Direct Private Equity Funds|
|* Data derived from the Global Billion Dollar Club, published by HedgeFund Intelligence|
|** Figures show total capital raised since inception, obtained from publicly available sources|
|*** Figures show total assets under management, obtained from publicly available sources|
|Overall survey statistics|
|Manager Type||FoHF*||Hedge Funds*||Private Equity FoF*||Private Equity Funds*||Real Estate Funds||Commodities Funds||Infrastructure Funds||Real Assets||Illiquid Credit||Total|
|Top 100 total assets||172.5||723.9||321.6||752.6||1,020.60||78.6||120.6||–||77.7||3,268.20|
|Top 100 Pension Fund assets||94.1||162.8||264.8||199||478.4||16.6||108.5||6.7||25.4||1,356.30|
|Top 25 Insurance Company assets||16.7||11.9||32.2||5.4||172||–||6.1||–||30.7||274.9|
|Top 25 Sovereign Wealth Fund assets||17.3||23.9||7.9||37.1||51.6||–||11||–||4.3||153.1|
|Top 25 Endowment & Foundation assets||8.7||17.5||5||20.6||16.7||4||–||5.4||4.9||82.8|
|Top 25 Fund of Fund assets||–||40.6||–||49.9||–||3.5||5.6||–||–||99.5|
|Top 25 Wealth Manager assets||39||65.4||–||43.4||191||59.9||26.9||–||–||425.6|
|Top 25 Bank assets||25.7||23.2||4.6||12.4||34.9||2.5||6.1||3.6||11.2||124.2|
|* Figures for some of these managers were obtained from publicly available sources and using data derived from the Global Billion Dollar Club, published by HedgeFund Intelligence|