2024 is earmarked to become an evolutionary year for alternative asset investments with trillions of dollars of private capital. Steve Warren and his team at OSIsearch are well positioned to meet the demand with its vast connections of best of breed portfolio managers and quantitative resources.
With 22.6 trillion USD invested into the private capital sector and an 11 percent expected CAGR over the next 10 years, these resources are critical for Asset Managers to keep up with the expected unprecedented growth. As the industry grows, executives in this sector must stay abreast of the latest technology, quantitative and creative methods available to remain competitive. Thanks to our deep database and understanding of the financial services marketplace, OSI might very well be the best resource to partner with. In this blog post, we delve into the macroeconomic factors impacting private capital, key trends this year and where we and intend to meet these critical demands
2024 will be a record high of dry powder for private markets; BlackRock estimates 4 trillion USD in private capital remains uninvested in projects. While investment in private capital significantly grew, high interest rates have hindered many M&A deals from being executed this year. If inflation and interest rates lower in 2024, high volumes of deal activity are likely to occur. The Federal Reserve forecasted three quarter-basis point cuts to interest rates by the end of 2024, giving investors hope that private capital this year will perform well.
Most large private capital firms operate worldwide, meaning geopolitical risks can majorly impact their dealmaking abilities. S&P Global highlights Russia-NATO tensions, US-China relations, deglobalization, and energy security as key areas to watch out in 2024. Firms will need to carefully navigate these geopolitical risks in their deal making throughout the year.
The adoption of technology in alternative asset management is accelerating, driven by the need for efficiency, data-driven decision-making, and enhanced cybersecurity. Executives who possess a strategic vision for digital transformation and a strong grasp of emerging technologies will be sought after. OSISearch is committed to identifying leaders who can spearhead technological advancements within private capital firms, ensuring they remain at the forefront of innovation.
Private credit continues to be a significant trend in alternative asset management for 2024. As investors seek non-traditional avenues for returns in the volatile macroeconomic conditions, private credit strategies are gaining prominence. Executives with expertise in structuring and managing private credit deals are becoming increasingly valuable. OSISearch is dedicated to identifying leaders who can navigate the intricacies of the private credit landscape, ensuring our clients have the right talent to capitalize on this growing market.
Private capital is increasingly becoming a global affair, with cross-border investments on the rise. Executives who can navigate the complexities of international markets, regulatory landscapes, and cultural nuances are crucial for success. OSISearch’s global reach and extensive network enable us to identify leaders with the acumen to drive expansion strategies and manage diverse portfolios across borders.
As alternative asset continues to grow, so does the need for dynamic and visionary luminaries and supporting teams. At OSIsearch, we understand the importance of staying ahead of the curve and ensure we consistently provide our clients with top-tier talent. The trends outlined above underscore the changing landscape of private capital and highlight the critical role executive search plays in providing resources who can drive greater returns in 2024 and beyond.