Alternative Asset Management: Light Up Dry Powder

Alternative asset management (ALT) firms aim to increase their market share by investing the funds they currently have available, which is at an all-time high. These firms provide a one-stop-shop for investing in various asset classes for different types of investors such as private/public pensions, sovereigns, and family offices. We expect the ALT investment cycle to speed up in 2024, with more fundraising, investing, appreciation, and distribution. Our top recommendations for investment in this sector are APO and KKR, both diversified and focused on insurance. We also suggest ARES for private credit, BAM for real assets such as renewables and infrastructure, and CG for a turnaround story. BX is the industry's largest firm.