LAGRANGE Fund Monitor H1 2024: Rising Interest in Secondary-Market Transactions and New Asset Classes

LAGRANGE Financial Advisory GmbH's latest survey reveals a stabilized and slightly increased institutional interest in expanding real estate special AIF portfolios. Despite the popularity of residential real estate, interest in newer asset classes like micro-living and data centres is growing. Core-plus investments are currently more in demand than core investments.

Infrastructure investments are focusing on renewable energies, diversified funds, and digital infrastructure. The most coveted foreign markets include the BeNeLux region, the UK, France, and the USA.

Participants, primarily from insurance, banking, and pension sectors, indicated a modestly positive shift in real estate special AIF investment interest, scoring 6.25 out of 11. Infrastructure investments scored 7.10, showing a rising preference for AIF vehicles.

Germany remains the top investment region, followed closely by BeNeLux. Institutional investors show significant interest in renewable energy and digital infrastructure within Europe, with secondary-market transactions increasingly seen as viable alternatives.

The main reasons for these investments are portfolio diversification and seizing market opportunities, with challenges including falling property prices and scarce investment opportunities. Notably, respondents indicate a higher interest in buying and selling fund units on the secondary market.