Alternative Investment Software Global Market Report 2025

The alternative investment software market size has grown rapidly in recent years. It will grow from $2.4 billion in 2024 to $2.7 billion in 2025 at a compound annual growth rate (CAGR) of 12.7%. Growth in the historic period can be attributed to increasing investor demand for diversified portfolios, rising awareness of alternative asset classes, growing capital allocations from institutional investors, a surge in cross-border investment activities, the expansion of family office investment operations, and greater adoption of remote investment management services.

The alternative investment software market size is expected to see rapid growth in the next few years. It will grow to $4.3 billion in 2029 at a compound annual growth rate (CAGR) of 12.3%. Growth in the forecast period can be attributed to rising interest in non-traditional assets among retail investors, an increasing number of investment fund launches focused on private markets, heightened regulatory emphasis on transparent reporting, the surge in global high-net-worth individual wealth, the expansion of outsourced fund administration services, and growing penetration of investment platforms in developing economies. Major trends expected in the forecast period include technological advancements enabling automated portfolio rebalancing, progress in AI-driven risk scoring, innovations in cloud-based portfolio visualization tools, developments in predictive analytics for investment performance, research and development in automated compliance workflows, and innovations in blockchain-powered settlement and reconciliation systems.

The increasing presence of institutional and retail alternative investors is expected to drive the growth of the alternative investment software market in the coming years. Institutional and retail alternative investors are individuals and professional capital providers who allocate funds to non-traditional asset classes such as private equity, hedge funds, private credit, and real assets. This growth is largely due to the rising demand for diversification and better risk-adjusted returns as traditional equity and bond markets face growing volatility. Alternative investment software aids both institutional and retail investors by offering comprehensive tools for portfolio management, risk assessment, compliance, reporting, and real-time analytics, helping them manage complex alternative assets more efficiently. For example, in August 2025, the Securities and Exchange Commission (SEC) reported that private funds in the United States held around $24.9 trillion in gross assets at the end of the fourth quarter of 2024, marking a 9.4% year-over-year increase compared to the fourth quarter of 2023. This growth in institutional and retail alternative investors is fueling the demand for alternative investment software.

Key players in the alternative investment software market are increasingly adopting cloud-native Software as a Service (SaaS) architectures to improve scalability, operational efficiency, and real-time portfolio management. Cloud-native SaaS solutions, which are built on distributed, microservices-based infrastructure hosted on the cloud, allow for automatic updates, instant scalability, and remote access, enabling the management of complex workflows in real time. For example, in May 2023, TS Imagine, a US-based provider of trading, portfolio management, and risk management software for hedge funds and asset managers, launched TS One, a cloud-native SaaS investment management platform. This platform integrates trading, portfolio analytics, risk management, compliance, and operations into a single interface, offering multi-asset trading workflows, embedded cross-asset risk models, and real-time data management to enhance automation, decision-making, and scalability.

In December 2024, Allvue Systems Holdings, Inc., a US-based provider of end-to-end software solutions for alternative investment managers, acquired PFA Solutions for an undisclosed amount. This acquisition gives Allvue Systems access to PFA’s carried interest, compensation, and co-investment management platforms, bolstering its fund accounting and investor reporting capabilities. The acquisition also strengthens Allvue's scale, product depth, and service offerings for private capital firms. PFA Solutions is recognized for its FirmView platform and its expertise in managing carry, deferred compensation, and co-investment tracking for private equity, venture capital, and other alternative asset managers.

Major players in the alternative investment software market are BlackRock Inc., S&P Global Inc., State Street Corporation, Fidelity National Information Services Inc. (FIS Global), Deutsche Börse Group, SS&C Technologies Holdings Inc., ION Group, MSCI Inc., SEI Investments Company, Finastra Group Limited, Valsoft Corporation, Addepar Inc., Clearwater Analytics Holdings Inc., Allvue Systems LLC, Dynamo Software Inc., FA Solutions Ltd, Elysys S.A., Limina AB, AlternativeSoft SA, FundCount LLC.

North America was the largest region in the alternative investment software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in alternative investment software report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the alternative investment software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

The alternative investment software market research report is one of a series of new reports that provides alternative investment software market statistics, including the alternative investment software industry global market size, regional shares, competitors with the alternative investment software market share, detailed alternative investment software market segments, market trends, and opportunities, and any further data you may need to thrive in the alternative investment software industry. This alternative investment software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Alternative investment software is a digital platform designed to manage, track, and analyze non-traditional investments such as hedge funds, private equity, venture capital, and real estate assets. It offers tools for portfolio management, performance reporting, compliance, accounting, data aggregation, and risk analysis, helping streamline complex investment workflows. Investors and fund managers use this software to make more informed decisions, enhance transparency, reduce manual errors, and simplify back-office operations.

The primary components of alternative investment software include both software and services. The software consists of digital platforms and applications built to streamline portfolio management, reporting, compliance, analytics, and operational workflows for alternative asset managers. It is used by organizations of different sizes, including large enterprises and small and medium-sized enterprises (SMEs). Deployment modes include on-premise and cloud-based solutions. Key applications include portfolio management, risk management, fund accounting, trading and exchange platforms, compliance and reporting, and asset management. These solutions serve a wide range of end-users, such as hedge funds, private equity firms, venture capital firms, real estate investment firms, family offices, and fund administrators.

The alternative investment software market consists of revenues earned by entities by providing services such as data onboarding services, customization services, regulatory reporting services, cloud hosting services, cybersecurity and data protection services, and system upgrade services. The market value includes the value of related goods sold by the service provider or included within the service offering. The alternative investment software market also includes sales of deal sourcing software, investor portal software, fundraising and customer relationship management (CRM) software, asset valuation software, reconciliation software, and allocation and fee calculation software. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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