Demand for alternative assets is expected to increase by up to 46% over the next 12 months
New Survey from AssetTribe Reveals How Inflation, Diversification and Potentially Higher Yields Are Driving Growth in Alternative Investment Markets
- The most popular alternative assets are real estate (75%), net zero carbon funds (51%), forestry (49%) and wine (38%).
- Alternative assets attract more interest than private equity investments (56% vs. 46%)
- 44% of investors are now comfortable with tokenization – up to 77% are now comfortable in the wealthiest cohort
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A positive outlook for alternative assets
LONDON, July 13, 2022 — Today AssetTribe, the alternative investment platform that connects investors to a wide and diverse range of alternative assets, released its latest research showing that demand for alternative investments is set to increase by up to to 46% over the next few years. 12 months.
Working with market research firm Survation, AssetTribe spoke to over 580 sophisticated investors across the UK and Europe to discuss their attitudes towards investing in alternative assets.
The results of this survey showed a positive outlook for alternative assets over the next 12 months, with 53% saying their appetite for alternative assets will increase over the next 12 months, while only 6.4% said that it would decrease (46% net growth). The research then identified three main reasons for this growth; on the one hand, due to the current inflation rate (62%), on the other hand due to a growing need for diversification of existing portfolios (62%) and finally due to more attractive potential returns (53%) .
AssetTribe Founder and CEO Jeremy Davies commented: “This is one of the largest surveys of investor attitudes towards alternative assets in the UK and continental Europe. Alternatives have been a rapidly growing asset class for institutions over the past 20 years and it’s clear that high net worth investors want in on the act. What was more telling and pleasing to see was that investors were considering an increasingly diverse range of alternatives, from real estate to wine and net zero funds.
The survey then explored the types of alternative assets investors were most likely to invest in, with real estate being the most popular at 75%. However, other alternatives are also considered very popular, including long-term asset funds (62%), net zero carbon funds (51%), forestry (49%), fine arts (40 %) and wine (38%).
Although primarily focused on wealthy investors, the survey found dramatic differences in the behaviors of wealthier participants who invested significantly more in alternatives than those with smaller portfolios (76%).
Additionally, investors appear to have become much more comfortable using technology and are twice as likely to use platforms to make investments (52% vs. 26% overall) and to be more open to concepts such as tokenization (74% vs. 44% overall). However, surprisingly, UK investor participation in alternatives (35%) lags significantly behind that of their European counterparts where 79% of respondents are currently investing in the sector.
Davies continued, “Over the past decade or so, alternative assets have come with a higher perceived risk profile with many hurdles pushing them beyond the means of high net worth investors, making them uniquely the realm of institutional investors. At AssetTribe, our sole purpose is to simplify and democratize the alternatives market. Our investment platform connects investors to multiple investment opportunities across a diverse range of assets and funds real world that are easier to understand and use.”
AssetTribe is a growing community of Family Offices, High Net Worth Investors and Deal Sourcers, brought together by a platform for buying and selling alternative assets. AssetTribe’s goal is to open access to alternative assets and facilitate their investment so that investors can diversify their portfolios. Based in London, AssetTribe improves transferability and liquidity for investors seeking a wider range of real assets, as well as alternative investments with lower minimums, as they seek future returns.