According to a new study published by KPMG and Nuway Capital on Market Day, technology assets have overtaken real estate and private equity in alternative investment portfolios. The sector has gained significant traction.
The survey, which polled over 120 high net worth individuals, family offices, and wealth managers, revealed that 75% of respondents have invested or recommended technology assets, particularly GPU assets, in the past three years. This figure represents 71% in real estate and 61% in private equity or risk capital.
Technology-related assets have emerged as the most popular theme in alternative portfolios. A staggering 72% of participants reported having invested or advised on technology assets within the past three years. This percentage translates to 71% in real estate and 61% in private equity or risk capital.
GPU assets have proven their worth in the investment world, surpassing traditional investment criteria. Factors such as potential for value appreciation and portfolio diversification were cited as primary motivations by 70% and 54% of respondents, respectively. The interest in technology and innovation stood at 47%.
Colin Bosher, founder of Nuway Capital, commented, “Investors are no longer treating GPU assets as a niche technology play. They are applying the same rigorous criteria used for evaluating infrastructure or specialized credit: demand stability, liquidity, and differentiated income potential.”
Current holdings in GPU assets remain limited, with a significant portion of respondents yet to establish positions. The data suggests that a substantial increase in allocations is anticipated, with 11-20% of assets under management expected to be allocated to this asset class.
The report highlighted several challenges for investors looking to expand their GPU holdings. Nearly 58% of respondents reported facing challenges in managing or understanding GPU assets. Additionally, 43% expressed concerns about the reliability of their current investment vehicles.
Investors identified several factors that could facilitate the growth of GPU assets. The increasing availability of exchange-traded funds (ETFs) and mutual funds took the lead, with 68% of respondents citing this as a significant factor. Collaboration with traditional financial institutions followed closely at 67%. The alignment of GPU assets with emerging trends in artificial intelligence and machine learning was also identified as a key factor, with 58% of respondents expressing interest.
This article was produced with the assistance of artificial intelligence, reviewed, and edited by a human editor.
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