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Institutional Allocators Deploy Record $251 Billion into Alternatives, Fuelled by AI and Co-Investments

Dasseti and Alternatives Watch Report States that Private Equity, Private Credit, and Real Estate Lead 22% year-over-year Growth in Mandate Activity

Institutional investors committed a record $251 billion to alternative investments in the 12 months ending June 30, 2025, according to the newly released AW Investor Compendium 2025, produced in collaboration with Dasseti and Gen II Fund Services. The figure marks a 22% increase from 2024, underscoring growing demand for illiquid strategies amid persistent market volatility and fee pressure.

Key findings from the report include:

$107 billion was allocated to private equity, with commitments up 41% year-over-year despite recent valuation pressures.

$52.4 billion flowed into private credit, driven by asset finance and infrastructure-related strategies.

$38.2 billion was committed to real estate, as investors returned to non-core and global strategies.

Co-investments surged, with LPs securing direct exposure alongside flagship funds to reduce fees and enhance alignment.

Artificial intelligence entered mainstream adoption in due diligence, manager screening, and investor communications, with firms deploying AI tools to boost efficiency and compliance confidence.

“The pace and complexity of capital deployment are accelerating, and firms need tools that keep up,” said Wissem Souissi, CEO of Dasseti. “At Dasseti, we are transforming how investment firms communicate with their investors and vice versa. Whether it’s responding to RFPs and DDQs, maintaining consultant databases, or managing due diligence, our platforms help teams move faster, stay compliant, and engage more effectively. AI is a key part of that.”

The AW Investor Compendium 2025 analyzes investment flows, return profiles, and emerging trends across global allocators. It reflects insights from pensions, endowments, and sovereign funds that are reshaping how capital is committed in an increasingly complex environment.

The AW Investor Compendium 2025 is available to institutional investors and stakeholders at https://www.dasseti.com/insights/what-251b-in-allocator-mandates-reveals-about-alternatives-in-2025

Fiona Sherwood
Dasseti
+1 857-304-0007

Joseph Wilson

Joseph Wilson is a veteran journalist with a keen interest in covering the dynamic worlds of technology, business, and entrepreneurship.

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