TLDR:
- Institutional investors are increasingly interested in credit strategies, with $6 billion being allocated to alternative credit strategies in May.
- This outpaced private equity investments, which saw $3 billion in capital.
Institutional investors are showing a growing appetite for credit strategies, as evidenced by the latest AW Research Investor Scorecard. In May, allocators placed approximately $13 billion across private markets, with a significant portion, around $6 billion, going to alternative credit strategies. This allocation surpassed that of private equity, which saw $3 billion in capital flows during the same period.
The data indicates a trend towards credit strategies among investors, with real estate also making inroads into their investment portfolios. This shift highlights a shifting landscape in alternative investments, with allocators diversifying their portfolios to include a mix of asset classes.
The report also mentions specific allocations made by institutional investors, such as Blackstone, CPP Investments, CVC Capital Partners, New York State Common Retirement Fund, Texas Permanent School Fund Corporation, and others. These allocations demonstrate a continued interest in alternative investment opportunities and a willingness to explore new strategies and asset classes.
Overall, the article emphasizes the increasing importance of credit strategies in institutional investors’ portfolios and the broader trend of diversification within the alternative investments space. As allocators continue to seek out new opportunities for returns and portfolio growth, credit strategies are becoming an increasingly attractive option.
