Strategy in Focus: Natural resources

This Strategy in Focus report offers an LP-oriented analysis of the natural resources asset class. Using Preqin performance and fundraising data in tandem with third-party sources, we examine thematic drivers of investment in natural resources via private markets

• Average natural resources allocations doubled from 0.5% to 1.0% of institutional AUM between 2021 and 2025

• Distributions have exceeded capital calls since 2021, improving the asset class’s cash flow profile for LPs

• Productive land and critical minerals are likely to remain key investment themes, supported by the need for food security, electrification, and supply-chain resilience