Mumbai: In the next five years, 46% of investors in alternative assets plan to boost investments in China and India, while 30% are planning to increase their allocations to Africa, as interest in emerging market (EM) assets grows, according to a report by alternative assets data tracker Preqin. Fund managers are increasingly looking at opportunities in emerging markets, and almost half of them say that these markets will present the best opportunities in 2023, the report said.
Emerging Asia, China, India and Africa are of particular interest, with the largest proportion of fund managers planning to increase their investments in those respective regions over the next five years.
“We expect the whole of the alternative assets industry to grow in the next five years, but the industry will look very different to what it is now. With the market seeing capital concentration and consolidation, fund managers and investors will have to diversify away from North America and Europe to stand out and find opportunity.
This is why emerging markets will shine and why we’ve already seen growing interest in these regions," said Amy Bensted, head of data products at Preqin.
Fund managers have noted the increased investor interest in emerging markets.
Although just 23% of them believe emerging markets currently offer the best opportunities, almost half (46%) say these markets will present the best opportunities in 2023, said Preqin in its report.
In keeping with the growing interest in emerging markets, 54% of fund managers plan to increase investments in the emerging regions while 58% are looking at the Asia-Pacific region.
Specifically, 53% plan more investments in emerging Asia, 49% look to increase investments in China, 46% plan to increase investments in Africa and 44% are looking at India, over the next five years, said Preqin in its report.