Nearly $3.5 trillion in dry powder has accumulated in the alternative investment ecosystem. Demand will continue to grow, and the asset class is poised for another bullish year of investment and exit activity. Corporate activity will also lead to higher M&A deal flow. In private equity focus on managers targeting mid-market opportunities where sponsors have more control over terms and deeper cooperation with portfolio companies. Private debt and alternative income offer better options than public markets with similar risk levels, and they are now essential to include in income generating portfolio. Alternative income strategies have a built-in hedge against higher rates because of their control over terms and common floating rate structures. Hedge funds will act as both risk mitigators and return enhancers this year. Volatility is good for the asset class, and divergences in global rates, currencies, and markets will be tailwinds.