2015 alternative investment industry outlook: complex ground, new frontiers

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+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + Monetization • Monetization creates opportunities for both buyers and sellers, and raises dynamic technical and regulatory issues • Buyers will place more emphasis on the infrastructure side of the business • New and flexible sources of capital emerging with investors looking for a stable organization and strong leadership • Managers will look to strategic partners to help drive future business growth In many ways, the alternative investment industry is still among the most nimble and adaptive sectors of the financial services industry, producing tremendous innovation across many aspects of the business. Check out the three key areas that the alternative investment industry will likely have to prioritize in 2015. As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2015 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited 2015 Alternative Investment Outlook Complex ground, new frontiers Globalization • Globalization is creating new investment opportunities and new investors • Wealth is being created around the world at a rapid pace—which will dramatically increase the complexity and cost of operations • The largest firms have the advantage—smaller organizations will look to compete by leveraging partnerships and relying on outside expertise Strategic brand risk management • The effectiveness of an organization’s strategic risk management is reflected in their brand and will be paramount for success in 2015 • Trust is essential for alternative managers—especially those acting as a fiduciary • A strategic approach will help the firm withstand market disruptions, fight cyber attacks, and effectively address regulatory scrutiny

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Monetization• Monetization creates opportunities for both buyers and sellers, and raises

dynamic technical and regulatory issues • Buyers will place more emphasis on the infrastructure side of the business• New and flexible sources of capital emerging with investors looking for

a stable organization and strong leadership• Managers will look to strategic partners to help drive future business growth

In many ways, the alternative investment industry is still among the most nimble and adaptive sectors of the financial services industry, producing tremendous innovation across many aspects of the business. Check out the three key areas that the alternative investment industry will likely have to prioritize in 2015.

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2015 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited

2015 Alternative Investment Outlook Complex ground, new frontiers Globalization

• Globalization is creating new investment opportunities and new investors

• Wealth is being created around the world at a rapid pace—which will dramatically increase the complexity and cost of operations

• The largest firms have the advantage—smaller organizations will look to compete by leveraging partnerships and relying on outside expertise

Strategic brand risk management• The effectiveness of an organization’s strategic risk

management is reflected in their brand and will be paramount for success in 2015

• Trust is essential for alternative managers—especially those acting as a fiduciary

• A strategic approach will help the firm withstand market disruptions, fight cyber attacks, and effectively address regulatory scrutiny