Investors are now firmly in risk-off mode. The hangover from post-COVID-19 stimulus measures has combined with geopolitical events to create the perfect storm for risk assets in 2022. Global public equity markets fell by 20.2% in the first half of 2022, taking most of the initial hit. This means some LPs are grappling with the denominator effect, leaving alternatives allocations higher as a proportion of total portfolio value, and allowing less room for fresh capital commitments. With the near-term outlook for markets still uncertain, this adds a further incentive for allocators to slow the pace of deployment toward private assets.

Read Preqin Investor Outlook: Alternative Assets, H2 2022 to discover investor views on valuations, performance, and allocations over the next 12 months.