2015 Alternative Investment Industry Outlook
Complex ground, new frontiers
In many ways, the alternative investment industry is still among the most nimble and adaptive sectors of the financial services industry, producing tremendous innovation across many aspects of the business. This Outlook, produced by the Deloitte Center for Financial Services, provides an analysis of industry priorities and anticipated trends coming in 2015.
The alternative investment industry faces both challenges and opportunities in 2015. In many ways, the industry is on more solid footing than it has been for quite some time. The US economy continues to improve, although concerns remain in both Europe and some emerging markets. Investors are generally seeing solid performance, and profitability in many sectors is strong. In this Outlook, we highlight three areas that alternative fund managers will need to give their full attention in order to grow: globalization, monetization, and strategic brand risk management.
This outlook is part of Deloitte’s Financial Services Industry Outlooks series which provides insights and trends for banking, insurance, investment management, and commercial real estate.
Globalization is generating tremendous opportunity for alternative managers in the form of both new investments opportunities and new investors. When thinking globally managers should:
- Focus on the complexity
- Understand the full tax, regulatory, and operational implications
Monetization is creating opportunities for both buyers and sellers, but it is also raising dynamic technical and regulatory issues. In order to be successful, managers should:
- Invest in the proper due diligence and tax planning
- Evaluate the investor relations and public relations aspect
- Consider the risk management
Strategic brand risk management
Strategic risk management will be essential for organizations to succeed in 2015. While an upfront investment is required, in return alternative investment managers will be better prepared to:
- Withstand market disruptions
- Fight cyber attacks
- React to regulatory scrutiny