Exclusive insights: Alternatives outlook Q2 2026

In Q1, Euroclear revealed a new capability classifying subscription activity on Euroclear FundsPlace^®, offering exclusive insights into how our global network of financial intermediaries allocated capital during the period.

Building on our Q1 analysis, we have now incorporated redemption data into our proprietary tracking. This is particularly relevant as instances of fund gating become more prevalent.

Derived from more than €10 billion in subscription activity across a subset of 2,800 alternative funds on Euroclear FundsPlace, our dataset showed a continuation and acceleration of Q1 trends. In this update, we delve into the insights behind these trends.

Across the wider market, the industry has been increasingly anxious about mounting redemption pressures. Our data at Euroclear FundsPlace reflects this reality, showing a significant increase in redemption activity during Q2.

Despite redemption headlines stirring up negative investor sentiment, appetite for investing in alternative funds continues to grow. We’re seeing continued growth on the platform with growing subscription volumes preserving net positive flows across the platform.

Allocators appear to be actively recalibrating their portfolios, seeking out strategies that can successfully navigate and even capitalise on market swings.

While redemptions and subscriptions both rose, the most compelling insights emerge when looking at specific asset classes and allocations. We saw a stark divergence, with hedge fund allocations rising while private credit allocations fell.

In Q1, we observed that hedge fund strategies saw increased interest during a period of heightened geopolitical uncertainty. The data for Q2 shows an acceleration of this trend.

Generally, hedge funds are more able to turn market swings into positive returns. Recent market turbulence, driven by fluctuating oil prices and sharp swings in technology share prices as investors digest the impact of AI on these businesses, has provided the ideal environment for these strategies to shine. Commanding the lion’s share of new investor interest, hedge funds locked in 51% of total Q2 platform subscriptions, a steep ascent from 32% in Q1 and 22% at the close of 2025. Concurrently, hedge funds experienced a drop in redemptions, avoiding the trend of rising redemptions seen across other asset classes.

Conversely, the share of capital flowing toward private credit declined in Q2, settling at 25% of subscriptions – a notable drop from 33% in Q1 and 44% in late 2025. This shrinkage was compounded by a sharp increase in private credit redemptions during the period.

Tracking closely with the trend observed in private credit, private equity vehicles faced significant redemption pressure relative to their historical fundraising pace in H1 2026.

For fund managers looking to expand their reach, building an international presence is a daunting task; not every firm has the resources or the budget to put physical boots on the ground in every target market. This is where Euroclear FundsPlace’s insights drive real value, helping you locate demand to more efficiently allocate your sales resource and expand distribution.

In Q2, rather than showing a generalised global rising tide, our data revealed capital placement that is regionally concentrated. For asset managers looking to maximise fundraising efficiency, this concentration offers a helpful roadmap for targeted cross-border distribution. 

As market conditions shift, asset managers need to act quickly on investor sentiment to keep capital flowing.

Throughout the year, we will be monitoring these trends and providing useful updates. If you would like to dive deeper into the data and learn how our insights can support your distribution strategy, we invite you to connect with our team.