A report just published by PwC predicts global alternative assets will increase to $15.3 trillion by 2020.

In the lead up to it, the global alternative asset management industry is expected to experience a period of transformation as players calibrate their business and operations and make technology a top investment priority.

According to the report, Alternative Asset Management in 2020: Fast Forward to Centre Stage, the rapid developments in the global economic environment have pushed asset management to the forefront of social economic change.

As a result, the need for sustainable long-term investment returns has propelled the alternative asset classes to centre stage.

The principal focus for many firms will shift to creating a broader asset class and product mix and accessing new distribution channels.

PwC predicts that alternative firms and traditional firms looking to enter the alternatives sector will pursue one or more of three possible growth strategies; building, buying or borrowing expertise that they do not currently have in-house.

PwC expects alternative asset managers to continue to move into areas traditionally dominated by banks, such as lending, securitisation and financing as the funding gap continues to present considerable new opportunities.

Historically, investment in technology has not been a top priority for many alternative firms.

However, the next five years will see it become mission critical in driving investor engagement, data-informed decision making, operational and cost efficiency, and regulatory and tax reporting.