The Shifting Landscape of Alternative Investments -
China Can't Out Maneuver
US Private Equity Firms
But Will We Ever
Be Able to Invest in
China ?

There is a sea change coming
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Chris Moore

Chirstine is Realtor in
Southwest Michigan

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In the ever-evolving world of private equity and alternative investments, 2024 has proven to be a pivotal year marked by significant shifts in investor sentiment, structural changes in key markets, and the rapid expansion of certain asset classes. From private credit to digital infrastructure, and from commercial real estate to geopolitical considerations, a new era of opportunity and caution is unfolding for investment managers worldwide.

A Sea Change in ALT Investing

One of the most exciting trends currently underway is the increased openness toward alternative investments and private assets. This shift is particularly evident in the private wealth space, where individual investors are demonstrating a growing appetite for exposure to private markets. 

Inflows into this area surged by 80% last year, with January 2024 marking the best month since May 2022. The allure of premium returns continues to draw investors away from traditional equities and fixed-income assets, highlighting the increasing role of alternatives in diversified portfolios.


Private Credit on the Rise

Private credit has emerged as a major growth area, attracting capital from insurance companies, pension funds, and individual investors. The ability to connect investors directly with borrowers has resulted in additional yield capture, making private credit an attractive space for deployment. 

Corporate real estate credit assets, in particular, have witnessed extraordinary expansion, growing from $176 billion four years ago to $450 billion today. This growth underscores the strong momentum within private credit and its potential to reshape traditional lending markets.


The Data Center Boom and AI's Role

“One sector experiencing transformative change is data center infrastructure. As one of the largest owners of data centers globally, Blackstone and similar firms have positioned themselves at the forefront of this expansion. The demand for AI-driven computing power has intensified concerns about the necessary infrastructure to support the technology boom. While some investors worry about capital expenditure efficiencies in competing markets like China, long-term leased data centers continue to provide a stable and prudent investment avenue.


The evolution of AI and cloud computing is expected to further fuel demand for data centers. While companies like Microsoft and Meta have emphasized the necessity of physical infrastructure, shifts in the nature of AI processing—such as the movement from training to inference—may alter the form but not the fundamental need for data centers. Additionally, energy requirements will remain a crucial factor, reinforcing the importance of strategic investments in power infrastructure.


The Dealmaking Landscape: Signs of Recovery

hMergers and acquisitions (M&A) activity has been sluggish in recent years, but 2025 is poised to see a resurgence. Key indicators suggest that conditions are ripe for an uptick in dealmaking: Strong U.S. Economy: Economic stability provides confidence for strategic acquisitions. Healthy Equity Markets: The S&P 500 has risen 60% over the past two years, improving valuation metrics. Improved IPO Environment: The pipeline for initial public offerings has doubled year-over-year, signaling a reopening of public market exits. Low Credit Spreads: Investment-grade and high-yield credit spreads remain near historical lows, supporting leveraged buyouts. Regulatory Environment: While regulatory scrutiny persists, there is increased willingness for strategic transactions to move forward. With these favorable conditions in place, private equity firms are likely to see a more active year in monetizing assets, particularly through IPOs and strategic sales.

Christine Moore

Christine is a Real Estate Agent based in Niles MI.

She has sold more than 800 Million Dollars in Real Estate.

She is a great woman of Real Estate. 

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