Crestbridge, the agile alternative for private equity and real estate administration solutions, has released its latest global study revealing fund managers are expecting to increase their allocations to Buyout strategies and Growth Capital over the next 12 months.

The latest global Crestbridge Alternative Managers’ Mood Index (CAMMI) report reveals which asset classes are expected to see increased or reduced allocations over the next 12 months, as well as the challenges and opportunities alternatives fund managers are expecting to see. This iteration’s CAMMI scores highlight a discerning approach by asset managers in the face of economic headwinds. The overall CAMMI score for this period across all asset classes stands at 42.37, an 11.48 point decline from the previous score of 53.85.

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Key Insights

The Buyout sector has gained the most traction among fund managers since the last report. When asked about asset class allocation adjustments, Buyout strategies witnessed a remarkable 42.83% increase in its index score (to 57.14) since March 2023. This surge can be attributed to the perception of undervalued opportunities in the market amongst asset managers and their investors.

Growth Capital has remained resilient, with its CAMMI index score of 66.66% unchanged. Asset managers continue to see value in growth-stage companies, which seem less perturbed by interest rate increases and stubborn inflation.

All other asset classes saw a drop to varying degrees in their individual CAMMI score, indicating that on a net basis, fund managers are showing caution in some areas.

The vast majority of managers (89%) reported positively on their portfolio performance for the previous 12 months: 33% said their portfolio met their expectations, 17% said it exceeded their expectations and 39% said it went some way to meeting their expectations. The vast minority (11%) felt that their portfolios did not meet their performance expectations over the past 12 months.

Alex Di Santo, Global Head of Private Equity for Crestbridge commented, “Our latest CAMMI scores reveal a shift in the fund management landscape. Despite a general slowdown with fundraising, deal making and exits we are still seeing strong activity across each of the lower-mid market, mid-market and large-cap spaces. Whilst new challenges have emerged given the current macro-economic environment the general sense is one of positivity in the medium-long term… and private equity is long term.”

About the Index

Crestbridge’s Alternative Managers’ Mood Index (CAMMI) is an index of the prevailing direction of allocation trends in private equity and in real estate. It consists of a diffusion index (an advance/decline measurement) that summarises whether allocations for each sub-asset class, as viewed by fund managers, is increasing, staying the same, or decreasing. The purpose of the CAMMI is to provide information about the current and future asset allocation sentiment of various asset and sub-asset classes to the market.

The headline CAMMI is a number from 0 to 100. A CAMMI above 50 represents an allocation increase when compared with the previous month. A CAMMI reading under 50 represents an allocation decrease, and a reading at 50 indicates no change. The further away from 50 the greater the level of change.

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About the participants

Around 40% of CAMMI participants are well in the territory of the top-500 largest firms in the global fund management industry by assets under management. There is a good split between large, mid-market and smaller fund managers, but data will skew away from the smallest managers with less than $100m in AuM. Overall, we believe CAMMI provides an excellent range of opinions in the market.

Respondents heavily skew towards those whose latest fund were domiciled in Europe (80%), but a significant proportion – a quarter – of respondents cited North America (25%) as their latest fund domicile. The remainder make up Rest of world (10%), but none of which were domiciled in Asia. Respondents’ firms ran multiple core strategies. Once again there was a good split between the major strategies of Growth (24%), Private Debt (21%), Buyout (16%), Real Estate & Real Estate Debt (18%), Venture Capital & Debt (11%) and Secondaries/Fund of Funds (11%).

Over half (55%) of our participants are C-suite and directors of investment within fund management firms, i.e. those who are materially responsible for asset allocation decisions as well as all the other decisions about running the firm. Less than half (45%) of participants held other titles and whose roles might include allocation decisions, but not necessarily.

The survey was taken anonymously by respondents.

About Crestbridge

Crestbridge is a leading global administration, management & corporate governance solutions business providing a broad range of outsourced services globally, including accounting and compliance. Our expertise spans services, asset classes and jurisdictions. Since 1998, we have been putting our insight and experience to work for clients who include leading corporations, sovereign wealth funds, investor groups, and asset managers.

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Daniel Jason
Material Impact