Biennial Alternative Investments Review: The Deep End | Idea Farm

Biennial Alternative Investments Review: The Deep End

J.P. Morgan Asset Management

Michael Cembalest

Research

56 Pages

December 2025

J.P. Morgan Private Bank reviews the state of alternative investments across private equity, venture, hedge funds, private credit and real estate. Michael Cembalest highlights crowded trades, aging portfolios and looser underwriting that leave many managers in the deep end while still delivering solid reported returns.

Key Takeaways

Alternative landscape scope: Defines alternatives as private equity, venture, hedge funds, private credit and real assets within diversified institutional portfolios.

Risk build up: Describes how crowding, leverage and weaker covenants raise hidden portfolio risk despite strong backward looking performance.

Allocator implications: Encourages deeper underwriting, pacing discipline and scenario analysis rather than relying on headline returns.

Alternative Assets

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