Explore five major themes shaping alternative investment opportunities in 2025, from US housing and AI-driven demand to private credit.

The financial landscape in 2025 is characterised by transformative opportunities in alternative investments driven by major economic and technological shifts. Amid a persistent housing shortage in the United States, real estate development across multifamily, senior residential, workforce, and commercial sectors presents lucrative prospects for investors. AI's growing demand for energy and infrastructure is catalysing investments in power generation, including renewable energy and cutting-edge solutions like battery storage, nuclear, and digital infrastructure, such as data centres and communication systems. Normalising interest rates, accompanied by regulatory easing, have reinvigorated private equity, enabling increased mergers, acquisitions, and an upswing in secondary market activity as firms navigate evolving market dynamics. Growth equity and venture capital are poised to lean into breakthrough technology developments catalysed by robust investor interest and appealing valuation opportunities, especially in AI, robotics, and automation. At the same time, private credit remains a compelling area despite higher interest rate environments, offering opportunities in asset-backed lending and direct loans to support real estate and infrastructure projects. Throughout these sectors, the intersection of innovation and economic growth underpins a new era of alternative investment potential, while investors are urged to remain flexible and selective in navigating the associated risks and opportunities.