Investors have a greater appetite for risk, with opportunistic, distressed and value-added funds being considered more attractive than core and core-plus funds, according to new research by Preqin, a data provider on the alternative assets industry.

About 70 consultants from around the globe participated in the study which looked at current issues affecting the alternative assets industry, where the best opportunities lie, and investment plans for the next 12 months.

The study found that 68% of consultants believe North America will present the best investment opportunities in the coming year; 50% stated that there will be attractive openings in Asia; 38% and 35% respectively felt that Europe and South America will offer good opportunities over the next 12 months.

On a scale of 1 to 5, with five being the most attractive, opportunistic funds were ranked highest with a score of 3.7. Value-added and distressed strategies each scored 3.6. Core and core-plus strategies received a ranking of 2.6 and 3 respectively.

Preqin said it is possible that consultants believe core properties have become overpriced due to demand for high quality assets following the downturn.

The research suggests 52% intend to invest slightly more capital in private real estate than they did in 2010 and 20% plan to significantly increase the amount of capital they commit to the asset class. About 9% will be allocating less to real estate than they did in 2010, but none will be making a significant reduction in capital commitments.