Future of Alternative Investments Hedge Funds Private Equity

Published: Nov 30, 2021
By: Eric Fogelfis
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What’s Around the Bend: The Future of Alternative Investments

On October 7, 2021, EisnerAmper held its 6th Annual Virtual Alternative Investment Summit (AIS) titled What’s Around the Bend: The Future of Alternative Investments. The Summit featured prominent investors and fund managers who shared their respective outlooks on the hedge fund, private equity, venture capital, and alternative investment industries. AIS kicked off with a panel discussing the “The Future of Hedge Funds” followed by the keynote speakers Barbara Corcoran and Daymond John of ABC’s Shark Tank, hosted by Charles Weinstein, CEO, of Eisner Advisory Group LLC. The Summit concluded with a panel discussing “A New Era for Private Equity and Venture Capital.”

During the Summit, EisnerAmper surveyed approximately 200 attendees. Half of respondents (51%) revealed they expect private equity to be the asset class that limited partners (LPs) increase their investment allocations to the most over the next 12 months, with 27% and 22% of respondents, respectively, stating venture capital and hedge funds. Half of the respondents indicated that investments in the technology sector offered the best investment potential for the remainder of Q4 2021 followed by health care/life sciences from 39% of respondents, and infrastructure from 23% of respondents. “Despite the lingering effects of the COVID-19 pandemic, a new administration and ongoing geopolitical events, 2021 was a very good year for alternative investment managers,” said Peter Cogan, Managing Partner of EisnerAmper’s Financial Services Group. “The survey revealed that investors are adapting their strategies to take advantage of these micro-and macro-economic trends to generate alpha.”

Here is a summary of the three panels:

The Future of Hedge Funds

A panel of investment professionals discussed navigating the investment landscape in a changing post-pandemic world. Panelists agreed that that firms would integrate environmental, social, and governance (ESG) on both the fund level and overall macro level. Additionally, the speakers said funds will seek new opportunities by employing strategies investing in private investments, initial public offerings (IPOs), and special purpose acquisition companies (SPACs). Funds are also increasing exposure in alternative assets within the cryptocurrency and cannabis industry niches.

Panelists included:

Alan Reid, Founder and Managing Partner, rPartners
Paul Glazer, CEO and CIO, Glazer Capital
Scott Radke, CEO, New Holland Capital
Simon Fludgate, Head of Operational Due Diligence, Aksia, LLC
Moderated by Katie Brandtjen, Partner, EisnerAmper

Keynote Speakers: Barbara Corcoran and Daymond John of ABC’s Shark Tank

The Summit also featured a keynote/fireside chat with Charles Weinstein, CEO, Eisner Advisory Group LLC interviewing Barbara Corcoran, founder of The Corcoran Group, and Daymond John, founder and CEO of FUBU, both of ABC’S Shark Tank. The pair discussed their journeys including success, obstacles and tips for entrepreneurs. Both speakers concurred that entrepreneurs who were flexible and able to diversify were able to be most successful during the pandemic and will achieve sustainable growth into the future.

A New Era for Private Equity and Venture Capital

The Summit closed with a private equity and venture capital panel discussing topics that included an investment outlook, the role of technology in their businesses, and emerging investment strategies within ESG and diversity, equity, and inclusion (DEI). Panelists indicated that ESG and DEI initiatives are being interwoven into the funds’ strategies and due diligence processes. In terms of investment outlook, the panelists discussed the growth of the semiconductor and telecommunications sector which is attributed to the increased use of technology during the pandemic. Additionally, investment management firms plan to increase use of data analytics into the future while they advance forward with the ESG and DEI initiatives.

Panelists included: