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• Respondents expect private debt and credit (36%) and private equity (31%) to remain the top asset classes for ROI over the next three years, reflecting continued interest in the space as shown in our previous survey.
• Real estate (29%) rounds out the top three asset classes for the greatest forecasted ROI over the next three years.
• While residential/build-to-rent is anticipated to be the top real estate asset class (47%), respondent interest in data centers has increased dramatically, with 40% identifying them as a top real estate asset class for investment over the next two years, compared to just 27% who said the same six months ago.

• AI maturity is advancing, with organizations shifting from the conceptual phase (down 6 percentage points from 39% to 33%) to the developmental phase (up 13 percentage points from 26% to 39%) compared to ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø’s July 2024 findings.
• The majority of respondents are turning to external sources for AI capability development, with 63% leveraging third-party platforms and their built-in features, and 20% enhancing these platforms with additional capabilities.
• Back-office functions are leading the way in GenAI adoption, with 44% utilizing it for information technology (IT) and 36% for routine communication and content summarization across workflows (e.g., meeting notes, emails, writing assistance).  
• There is plenty of room to grow with the use of GenAI, considering some of the least commonly used functions for technology were fund management (12%) and portfolio optimization (7%).
• Top barriers to AI adoption include concerns over data integrity (53%), a lack of awareness and training (45%) and security vulnerabilities (35%), all consistent with the July 2024 survey.

• Interest rate uncertainty (67%) is seen as the most significant factor affecting investment performance; followed by technological advancements (35%) and consumer confidence (34%).
• Stable market conditions (55%) and reduced financing costs (54%) are the key signals respondents are looking for to determine if the environment for transactions is becoming more favorable.
• Almost half (46%) believe the Fed funds rate will remain between 3.75% and 4.00% by the end of 2025.

“The rise in the 10-year Treasury yield since the Fed's rate cut in September 2024 signals a broader shift,â€� said Yelena Maleyev, Senior Economist at ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø U.S. “Asset managers should pay close attention to trends in long bond yields, which will be crucial to adapting strategies beyond short-term rate movements."

• A majority of organizations (69%) continue to offer a hybrid work model, allowing employees the flexibility to work both remotely and in-office. In contrast, 27% of the organizations represented in the survey stated they are in-office five days a week, while only 5% remain fully remote.
• Additional top concerns for organizations in today’s environment include fostering meaningful interactions and connections (31%) and ensuring employee engagement and team-building in remote setting (30%).