Sector  Insights

Five Key Challenges for Alternative Asset Management

October 2013

The alternatives industry is embarking on a new era: one where managers and investors have a unique opportunity to thrive. To take advantage of this new environment, fund managers will need to be flexible and willing to evolve to keep up with changing dynamics.

Drivers of Change: Performance & Risk

As investors become more knowledgeable, alternative fund managers will need to become more proactive and responsive.


Prospering in an Uncertain Regulatory Environment

What was first perceived as an operational burden is turning out to be an opportunity, since regulations provide the transparency and oversight some investors need to feel comfortable investing.


Making the Most of Data and Analytics

As investor demands increase, the need for advanced data and analytics also rises.


Operational Excellence Under New Standards

While navigating squeezing fees and costly regulations, alternative fund managers are also under pressure to have institutional-quality back-office operations and a strong infrastructure.


Raising Capital Among Fierce Competition

Strategy and infrastructure are becoming increasingly important as alternative fund managers look to gain a competitive edge.


About the Research

In July 2013, State Street, in collaboration with Preqin, conducted a survey of 391 leading alternative fund managers. Of these respondents, the largest proportion (48 percent) were from the hedge fund management sector with a further 26 percent and 15 percent running private equity and private real estate funds, respectively. The remaining 12 percent of fund managers offered a diverse product range across alternatives.

Fifty-five percent of respondents were from North America, 29 percent from Europe, 10 percent from the Asia-Pacific region and the final 6 percent from other regions.