Growth for the Alternative Investment Market

New Rules of Engagement

Over the last two decades, the alternative investment market has seen accelerated growth. With performance challenges and mounting pressures from both investors and regulators, there’s no room for complacency.


The alternative investment market is changing fast. Those who adapt will thrive.

In an industry confident about its growth prospects, managers who can rise to the challenge are best suited to meet their ambitions.

In our 2017 Growth Readiness study,* 58 percent of managers said they were confident in meeting their growth objectives over the next five years. But 52 percent of respondents also acknowledged they’ll need to overcome significant operational inefficiencies to sustain growth. And 69 percent recognize that if they don’t improve operational agility, competitors will be better placed to capture growth opportunities.

So what’s an alternative asset manager to do? Our research identifies three critical steps:

  • Evolve to compete
  • Reboot performance
  • Elevate operations


*State Street 2017 Growth Readiness Study. State Street commissioned Longitude Research to conduct a global survey of more than 500 investment industry executives, including 93 respondents from the alternative asset management sector, during March and April of 2017. Study participants spanned investment, operations, sales and distribution roles. Alternative asset manager respondents include hedge funds, fund of hedge funds, private equity and real estate funds.