Global Alternatives Summit

The global alternatives market is undergoing an unprecedented shift, due to the increasing presence of high-net-worth and global mass affluent investors as the industry moves beyond traditional institutional investors. As global alternatives “democratize,” these retail investors are providing an important new source of capital for fund managers, but also present new challenges around education, distribution, product suitability, and managing fees and costs.

A fireside chat provided insights on the capital markets, near-term economic outlook, and the interplay of geopolitics. The topics discussed included analyzing the US Federal Reserve’s recent decision to pause interest rate hikes, examining trends in the global alternatives marketplace, and discussing the impact of the complex geopolitical climate.

The rise of artificial intelligence (AI) in the global alternatives’ ecosystem has the potential to revolutionize processes, from onboarding and investment management to reporting and cybersecurity. Funds and service providers are exploring new possibilities with generative and predictive AI, and while because it may take time to realize AI’s substantial promise, panelists emphasized the need to exercise caution, especially in data protection.

A thought-provoking fireside chat focused on how a people-focused culture is crucial for operational and financial success in the global alternatives industry. The discussion highlighted the importance of fostering an inclusive, supportive culture that provides important learning and development opportunities, and promotes wellness and a sense of belonging—all of which must be underpinned by a strong commitment from senior leaders.

The rapid escalation of global compliance and regulatory requirements is prompting fund managers to leverage automated solutions, enhance data management processes, and increase outsourcing to meet standards and manage complexities across a wide range of jurisdictions.

With new capital flows in global alternatives of between $500 billion and $1 trillion expected from global mass affluent retail investors in the next three years, fund managers are developing new strategies and reexamining models to attract that capital.

As the global alternatives market transforms with new investors and technology, evolving business strategies, and escalating regulatory requirements, funds and service providers are reengineering their traditional business models. They are adopting streamlined platforms, customizing products for new investors, and outsourcing front-office functions, including onboarding and AML/KYC, to spearhead the evolution of the industry and continually improve the client experience.