The Schroders Institutional Investor Study 2021 found that 90% of institutional investors plan on increasing their private asset allocations in the next 12 months. The study surveyed 750 investors. Private equity and infrastructure equity are the two categories attracting the most capital from institutional investors.

The study also found that institutional investors are also increasingly looking for ESG investments in private assets with positive environmental and social impact alongside taking into account potential ESG risks to financial and operational performance. Over a third of respondents stated that the COVID-19 pandemic increased the importance of ESG considerations when investing in private assets.

Georg Wunderlin, global head of private assets at Schroders Capital: “It’s interesting to see that private palettes will likely be growing more colourful, with a key finding of the 2021 study that investors are increasingly looking to branch out and explore new areas.”

A primary obstacle for investment is fees.

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