FUNDRAISING NEWS | November 15, 2024
A new report from Cerulli Associates highlights growing demand for alternative investments across Latin America, driven by wealthy individual and institutional investors, including pension funds.
In “The Cerulli Report – Latin American Distribution Dynamics 2024,” the firm said that in 2023, Latin American high-net-worth individuals invested over $1B in alternative products via US offshore wealth managers, a figure it expects to double in 2024. The expansion of access to private equity and private debt is fueling the surge, aided by platforms that provide more inclusive access to wealth managers and liberalized private pension regulations.
Meanwhile, pension systems in Mexico and the Andean region have also experienced significant growth, with over $71B allocated to alternatives at the end of 2023, up from $46B in 2020. The shift has in part been driven by government policies that view alternative investments as vehicles to promote local industry and infrastructure development.
“Global managers with alternatives products in their toolkit should strongly consider adding these products to their Latin American offerings, as intermediaries, especially boutique advisors, multi-family offices, and broker/dealers, are increasingly promoting these vehicles to their affluent clients,” Thomas Ciampi, a Cerulli founder and director of the firm’s Latin asset management practice said in a press release announcing publication of the report.
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