News / From the associates

Nuveen conducted a survey of 800 institutional investors worldwide to understand current trends and emerging factors influencing capital allocation decisions.

Sixty-six percent of respondents plan to increase their allocations to real estate over the next five years; among them, about two-thirds (65%) express a specific interest in data centers and related technologies. In this context, infrastructure and real estate remain the fastest-growing alternative asset classes, driven primarily by demand for digital infrastructure. Over 90% of investors now hold both private equity and private credit, compared to 45% in 2021, confirming a significant shift in the construction of alternative portfolios. The focus on credit for energy infrastructure is also strengthening, supported by public policies promoting the green transition.

Private equity continues to attract the majority of capital inflows, but private credit is also experiencing robust growth, with high-yield segments expanding—such as infrastructure credit and fund finance solutions (e.g., subscription lines and NAV lending).

Portfolios with greater exposure to alternatives stand out for their use of dedicated teams, highlighting a growing sophistication in management.

Insurance companies are emerging as the most dynamic players: 69% plan to increase their allocations over the next five years.

Areas of greatest interest include private real estate debt (45%), energy infrastructure credit (46%), private ABS (34%), and fund finance (26%).

On the sustainability front, 93% have adopted or are preparing to adopt ESG criteria, while 55% have already allocated a portion of their portfolio to impact investing—more than double the 26% recorded in 2023.

Finally, the approach to the energy transition is becoming more pragmatic: 73% of investors recognize the need to balance traditional and renewable energy sources to meet demand in the short term. Although the share of those who consider a low-carbon transition inevitable has decreased from 79% to 61%, concrete commitment is growing: 44% have already set net-zero targets, and an additional 25% plan to do so by the end of the year. Biodiversity loss is perceived as one of the main economic risks (45%), but only 30% are stepping up investments in this area, with a focus on sectors such as water management, recycling, and pollution reduction.

Download the report here