The alternative assets industry hit $6 trl (€4.4 trl) in assets under management for the first time last year after having added some $600 bn in assets through 2013, according to the latest Preqin Global Alternatives report.

The alternative assets industry hit $6 trl (€4.4 trl) in assets under management for the first time last year after having added some $600 bn in assets through 2013, according to the latest Preqin Global Alternatives report.

The report reveals that the global alternatives industry has shown significant growth in assets held by private equity, hedge fund, real estate and infrastructure fund managers following a year of improving exit environments, strong performance and increased fundraising levels.

The increase in assets under management stems from even greater appetite for alternatives with over 30% of investors intending to increase their allocations to the sector over the next 12 months.

According to the report, more than 80% of investors in alternatives felt their investments had either met or exceeded expectations over the previous 12 months. 'With the fundraising environment in 2013 indicating strong demand from investors, we anticipate even further growth for the alternative assets industry throughout 2014,' Preqin said.

The real estate sector reported the strongest fundraising year since the global financial crisis, and industry assets currently stand at $657 bn as of June 2013, up from $576 bn a year earlier.

Real estate was the best performing asset class in public pension funds’ portfolios over the three years to
June 2013, posting average returns of 13.7% and surpassing the average 13.6% returns on listed equities.

Around 31% of institutional investors in real estate are looking to increase their allocations to the asset class over the next 12 months, with only 5% intending to reduce their exposure.