Committing more to alternative asset classes is becoming a popular option for LPs. "We're seeing LPs increase their allocations over time as they've been dissatisfied for quite some time with yields and the credit markets. They feel like they've put as much as they want to into public equity markets," says Hugh MacArthur, the leader of Bain's global Private Equity practice. "It's only natural to look at private equity, infrastructure, real estate and other options where you could potentially generate some alpha. Institutional investors are satisfied with private equity and are trying to find a way to put more money to work in the asset class."