- Alternative investments are established components of highly diversified institutional portfolios. On average, they account for 30.31% of institutional portfolios.
- With interest rates falling, demand for bonds is declining significantly. Both alternative investments and equities are once again becoming much more attractive to investors.
- As in the previous year, we expect significant inflows for infrastructure investments in the coming year. Asset managers in the association have recognized this. Many GPs are setting up new infrastructure teams to give DACH investors access to this asset class.
- Investors are generally satisfied with the performance of their private equity investments. We see a positive development compared to the same period last year.
- Investors are very content with the performance of their private credit investments and are increasingly diversifying their debt allocation through credit specialties strategies.
- Although real estate markets are recovering after several difficult years and investors are significantly more optimistic about the market, they remain cautious. Many LPs want to further reduce their allocation. Capital flows remain weak, particularly for real estate debt.
Defence investments are being discussed in many investment committees. However, most investors are not yet ready to invest.
The BAI Investor Survey 2025, published today by the Bundesverband Alternative Investments e.V. (BAI), the central interest group representing the alternative investment industry in Germany, offers transparent insights into private market investments of German institutional investors and highlights the changes that can be expected in institutional portfolios. To this end, the BAI surveyed 107 institutional investors with over €2.23 trillion in assets under management (AuM) over the past few months. In addition to our LP survey, we received responses from 147 BAI member companies, primarily globally active asset managers.
Dr. Philipp Bunnenberg, BAI Head of Alternative Markets, is optimistic: "With over 30% private markets and alternative strategies, institutional portfolios are well positioned for the long term. Managers who can offer investors access to former niches such as credit specialties, ILS, and natural capital will benefit from ongoing diversification. Falling interest rates are providing additional momentum for alternative investments, and new offerings for wealth and retail clients are attracting widespread media attention. All in all, managers and investors view the current investment environment and investment performance positively and are optimistic about the future."
BAI Managing Director Frank Dornseifer comments on this year's Investor Survey as follows: "Once again, this year's survey has yielded valuable insights: one key message is the clearly articulated desire for simplified and better harmonized regulation, particularly in the areas of reporting and fund supervision, while at the same time there is clear rejection of more centralized supervision by ESMA. This is something to take note of. At the same time, there is clear support for the current SFDR system, so the review should aim more at simplification and greater practicality and less at fundamental reform. And this is exactly the position we have taken with the EU Commission. It is also noteworthy that interest in ELTIFs is growing even more strongly: a quarter of the participating GPs are already active, and another quarter are planning corresponding platforms with a focus on private debt, infrastructure, and private equity as investment classes. On the market side, I am pleased to see that interest in supposed niche segments, including liquid alternatives and venture capital, continues to grow. As an association, we will continue to expand our activities in this area in the future."
The BAI Investor Survey 2025 can be downloaded at the following link:
Press contact:
Bundesverband Alternative Investments e.V. (BAI)
RA Frank Dornseifer
Managing Director
Poppelsdorfer Allee 106
53115 Bonn
Tel.: +49 (0)228-96987-50
dornseifer@bvai.de
www.bvai.de
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