Over half of the 50 chief investment officers surveyed would consider allocating capital to
The research also revealed that private equity allocation looks set to surpass both hedge fund and real estate allocations within three years. At present, real estate followed by hedge funds comprise the largest two allocations within the alternative asset pool. Based on three-year target allocations of pension managers, the survey revealed private equity allocations should grow to 33% of the total alternatives allocation, larger than both real estate and hedge funds. Pension funds are predicted to allocate an additional US$1.2trn to alternative assets over the next three years. New money flows will be mainly comprised of US$400bn into private equity, US$370bn into real estate, US$290bn into hedge funds and US$160bn into other categories (including commodities, energy and timber.)