One could argue that exposure to alternatives is multi-asset class by nature. For example, a single hedge fund investment may invest in assets across the capital structure while a hedge fund program likely invests in many different strategies, sectors, and asset classes. Thus, it would make sense to consider multi-asset class investments as part of an absolute return/hedge fund strategy, on the shorter end of the liquidity spectrum.
At the other end of the spectrum, if a multi-asset class investment is structured to provide longer-term liquidity and a different risk/return profile, it may be categorized alongside private equity or special situations investments.
In either instance, investors who align multi-asset investments with a specific strategy allocation may benefit from the simplicity of the approach and get complementary exposure and deeper coverage within the respective markets.
However, opportunities may be missed due to category constraints or implementation time. It may take weeks to months to source an opportunity, perform due diligence, structure, and ultimately implement the investment.