Unlocking the open-ended alternative fund opportunity: Is industry-wide transformation needed?

Open-ended alternative investment funds are set for significant growth despite facing operational and regulatory hurdles. Their attractiveness stems from offering flexible investment options and continuous capital inflows, aligning with the changing preferences of high-net-worth individuals and family offices. By addressing these demands, General Partners can secure perpetual capital and broaden their reach through strategic distribution partnerships. This positions open-ended funds as essential players in the future of alternative investments, effectively balancing the pursuit of returns with robust risk management.

This article explores the increasing popularity of open-ended alternative investment funds, detailing their challenges and the strategic adjustments needed to cater to high-net-worth individuals and family offices, underscoring their potential for sustained growth in the investment landscape.

This article was originally published in the Deloitte Performance magazine: Open-Ended Alternative Investment Funds generate opportunities for LPs and GPs.