The growing attraction of alternative asset classes is shown by a 300 percent increase in their assets under management in the last decade.

This is according to research from alternative asset information provider Preqin, which found that in 2008 alternatives had $3.1 trillion in AUM whereas last year this reached $9.5 trillion. The firm projects that by 2023, alternatives AUM will stand at $14 trillion.

Preqin also found there was Increased competition (Capital Consolidation) pressuring Managers to differentiate.

There are now Record levels of capital and crowded market leading to increased competition for deals leading to inflated valuations.

Some investors think that the market is at the end of a cycle which makes Strong relative returns of Private Capital more important than ever, especially in a low return environment

However there are concerns around high pricing of assets could lead to restricted returns moving forward; in turn impacting fundraising.

Also despite hedge funds AUM decreasing, value-add in reducing risk and correlation in the event of a correction is proving attractive to investors in 2019 as the asset class continues to recover from a poor 2018