What’s on the minds of asset managers as we approach the end of 2024?

Respondents identified the availability of capital to fund growth as the most significant risk to their organization's success, followed by interest rate uncertainty and geopolitical risk. Comparing changes in sentiment towards our last survey, talent risk dropped behind geopolitical risk.

Respondents ranked private equity and private debt as the top two asset classes for ROI over the next three years, with 43% and 35% of respondents choosing them respectively. This echoed the results of our last survey.

Over the next 24 months, respondents are prioritizing property type investments in industrial, residential/build-to-rent, and data centers. The office sector lags at 13%, likely reflecting the ongoing impact of hybrid work arrangements following the COVID-19 pandemic. The responses indicate the increasing reliance on digital infrastructure, driving demand for data centers, and the enduring appeal of residential and industrial real estate.

While the asset management industry recognizes the benefits of emerging technologies like generative AI (GenAI), there are reasons why many are taking a prudent approach to adoption. 40% of asset managers rated their organization GenAI’s maturity as conceptual, in discussion or limited to isolated areas within the organization.

The biggest concern preventing them from GenAI was the risk of data integrity, statistical validity, and model accuracy. 

Additionally, most respondents anticipate more than an 18-month timeline for their organizations to fully adopt GenAI.