Only 62% of global investors say that their institutions’ investment performance met or exceeded long-term return objectives through the turbulence of 2022-2023, according to a report from the financial consultancy bfinance.
In 2024, however, there’s a slightly more optimistic tone, with the figure estimated to be 88%. While managers in private market asset classes (private debt, infrastructure and private equity) still demonstrated the strongest satisfaction ratings in 2024, satisfaction was significantly lower than in 2022.
Investors relayed high satisfaction with active fixed income manager performance, with 83% in investment grade bonds, but only 35% of investors were satisfied with real estate managers – a huge decline compared to 2022.
Private markets remain central to investment strategies, with 53% of investors planning to increase exposure over the next 18 months.
Infrastructure and private debt are leading areas of interest, capturing 36% and 35% of new allocations, respectively.
Interest in secondaries is growing, with 37% of investors boosting exposure as they seek liquidity options within illiquid asset classes. However, satisfaction with private equity managers has dropped significantly from 94% in 2022 to 69% in 2024, suggesting increased scrutiny of GPs.
