September 10, 2024 — More than 80% of asset managers globally launched new private asset funds during the past three years, and almost 85% plan to target private markets with new funds in the next three years. 

In North America, Europe and Asia, pension funds, endowments and other institutional asset owners have been pouring assets into private markets. Currently, private equity accounts for about 11% of institutional portfolios in the United States, with allocations to private debt making up about 4.3%. However, some of the largest institutions in financial markets have gone much further. For example, in March 2024, the board of the California Public Employees' Retirement System (CalPERS) approved a plan to invest up to 40% of its $500 billion-plus portfolio in private assets. 

“Institutional investors’ embrace of private assets is having a profound impact on the asset management business, and managers are re-making their product slates to meet the new demand,”  says Mark Buckley, Global Head of Investment Management at Coalition Greenwich.  

Private Markets Dominate Product Development Plans 
In a recent study by Coalition Greenwich, 82% of the asset managers participating have launched products in private equity or private debt over the several years.  Another 55% launched new products in other private “alternative” asset classes such as real estate, listed infrastructure, commodities, or hedge funds.

Managers expect to maintain a similar pace going forward. Approximately 84% of asset managers plan to launch private market products and 70% plan to launch new alternatives products. By contrast, only about half of asset managers have plans to come to market with new active fixed-income products. 

“In active equities, nearly a quarter of managers expect to launch new products, but almost another quarter expect to reduce the number of funds they offer,” says Mark Buckley. 

Navigating Change: Key Trends in Product Development & Management, a new report from Coalition Greenwich, analyzes key trends in asset management product development and management. The key findings include how asset managers expect to change their product lineups going forward, how long it takes managers in different markets to go from whiteboard to launch on new products, and how managers structure, staff and manage their product development and management functions.