Demand for alternative assets to rise 46 per cent over next 12 months

Demand for alternative assets is set to soar by 46 per cent over the next 12 months as rising inflation sends investor interest surging.

In a survey by alternative investment platform AssetTribe and market research firm Survation, 53 per cent of the 580 investors surveyed across the UK and Europe said their appetite for alternative investments would grow over the next year.

The high rate of inflation was the top reason for prompting investor interest in alternative assets, at 62 per cent. Alongside inflation, an increasing need to diversify existing portfolios at 62 per cent was also a major reason. Higher possible returns was another reason at 53 per cent.

Of the type of alternative assets, Real Estate was cited as the most popular at 75 per cent. Other highly popular alternative assets were Long-term Asset Funds at 62 per cent, Carbon Net Zero Funds at 51 per cent, and Forestry at 49 per cent. The survey was primarily focused on High Net Worth Individuals.

AssetTribe founder and CEO, Jeremy Davies, said: “This is one of the largest surveys into attitudes of investors towards alternative assets across the UK and continental Europe. Alternatives has been a rapidly growing asset class for institutions for the last 20 years and it is clear that High Net Worth Investors want in on the act.”

UK investor participation in alternatives with 35 per cent was significantly behind continental Europe’s with 79 per cent of those surveyed presenting investing in the area.