The study, which interviewed managers across different regions, including Europe, Asia, the Middle East, North America, and the UK, found that up to 85% expect a hike in capital raising at their companies compared to 2023, with nearly one in three forecasting a surge of 50% or more.

This optimism extends to new fund launches across the industry, as investors show a keen interest in diversifying their portfolios. The study reveals that almost all managers believe there will be an increase in the level of fund launches across all major alternative fund asset classes, including infrastructure, private debt, venture capital, real estate and private equity.

The key driver behind this bullish sentiment is the investors' growing desire to diversify, with 68% of managers highlighting this reason. It outpaces concerns about fixed-income market volatility and difficulties, which 65% of managers indicated as driving interest towards alternative assets.

Nearly half of the managers surveyed also noted that there are more opportunities now in the alternatives asset space, and 41% believe that improved regulation in these markets is fostering increased interest.

Yegor Lanovenko, Co-Head of Fund Services at Ocorian, expressed high confidence in the sector for the upcoming year. “There is a high level of confidence about the year ahead among alternative fund managers both for their own funds and for the sector as a whole, with different regional sentiments emerging,” he said.

Lanovenko also pointed out that managers in the US and Asia exhibit stronger sentiment for 2024 than their European counterparts. He linked the expected rise in capital raising and a surge in fund launches to growing investor appetite, suggesting that market conditions such as peak inflationary and interest rates environments are influencing these expectations.

Highlighting the operational impacts of this anticipated surge, Lanovenko added, “This expected surge in capital raising and fund launches turns the spotlight on efficiency and operational excellence, and fund managers increasingly rely on expert support and trusted partners to handle their fund launches and operations at scale.”

It's evident that the trend towards diversification and alternative asset classes is on the rise, and industry professionals are taking strides to prepare for an eventful 2024 in the world of alternative investments.