The alternative assets markets in Europe

Thursday 14 June 2018

Expertises

Alternative Assets Markets in Europe

Preqin and Amundi launch the most comprehensive analysis ever undertaken of the alternative assets markets in Europe. Based on industry-leading data collected by Preqin since 2003, this report gives a comprehensive view of the world’s second most significant region, after North America, for the alternative investments industry.

With a mix of mature and emerging economies, and an evolving social, political and regulatory environment, the European market for the alternative assets industry requires careful navigation. Certainly, European alternatives are in rude health, and the prospects for growth are good: more than 2,800 investors in the region allocate to one or more alternative asset classes, and assets based in the region are nearing €1.50tn. But the coming years won’t be without challenges, particularly in the face of more stringent regulation, as well as the end of quantitative easing and its impact on the availability of financing. Now more than ever, investing in Europe requires expertise and judgement to materialize its promised rewards

Mark O’Hare, CEO – Preqin

Europe has a rich and evolving alternative assets ecosystem, with over 5,700 fund management firms and 2,800 institutional investors overseeing investments across private equity, private debt, real estate, infrastructure, natural resources (collectively termed ‘private capital’) and hedge funds.

The alternative assets industry in Europe keeps growing, reaching a record €1.48tn in AuM at end of September 2017. This dynamic growth has been, mainly, driven by strong inflows of capital.

It is no longer just European banks and governments that are providing funding for the real economy: insurance companies and pension schemes are also playing their part. The popularity of alternative investments among pension schemes and insurance companies is well understood: the unconventional monetary policies developed in response to the Global Financial Crisis had a significant impact on all asset classes. Real assets are appealing to long-term investors for three reasons: they allow such investors to capture an illiquidity premium; they enhance income through a source of predictable returns; and they create diversification, as they have low correlation to traditional asset classes. 

Pedro-Antonio Arias, Global Head of Real and Alternative Assets at Amundi

Download the complete study Discover the Real & Alternative Assets