- Survey shows 94% of firms will spend more this year with nearly one in five increasing spending substantially
- Nearly six out of 10 say their senior management are very committed to using alternative data
Fundamental professional investors working for hedge funds, asset managers and pension funds are set to boost spending on alternative data this year reflecting increased demand and senior management support for its use in investment research, new research from Exabel, a leading alternative data insights and analytics platform, shows.
Almost all (94%) of the fund managers and investment analysts questioned say spending this year will increase on last year with 18% predicting a substantial increase.
The expected increase in budgets this year builds on recent expansion. More than half (54%) say budgets for buying and managing alternative data have increased 50% or more in the past two years. One in 20 of the professional investor groups surveyed said their budgets have more than doubled in the period and all firms questioned say spending has increased.
The global study in the US, UK, Hong Kong and Singapore with senior staff at investment organisations with total assets under management of around $2.4 trillion found strong support from senior management for the use of alternative data.
Around 58% say senior management are very committed to using alternative data while 42% are quite committed, the research for Exabel’s report Alternative Data Buy-side Insights & Trends 2026 found.
The report from Exabel, part of the BattleFin Group, found most organisations surveyed (84%) spend between $500,000 and $2.5 million a year on alternative datasets with a further 4% spending more than $2.5 million.
The table below shows how investment organisations surveyed estimate spending on alternative data management, staffing and datasets breaks down.
| Area of spending on alternative data | How many spend up to 10% | How many spend between 10% and 25% | How many spend between 25% and 50% | How many spend between 50% and 75% | How many spend between 75% and 100% |
|---|---|---|---|---|---|
| Software/technology | 1% | 10% | 36% | 41% | 12% |
| Headcount | Zero | 29% | 39% | 15% | 17% |
| Buying data | Zero | 25% | 29% | 34% | 12% |
Tim Harrington, CEO of BattleFin & Exabel said: “Budgets for alternative data are set to rise this year and senior management commitment to the use of this insight in investment research is high.
“Most of the investment organisations we surveyed currently spend between $500,000 and $2.5 million a year on alternative datasets indicating meaningful but disciplined investment levels.”
About Exabel
Exabel is an end-to-end platform designed to help investment teams seamlessly integrate alternative data with traditional financial metrics. The platform offers advanced analytical tools that enhance KPI forecasting, uncover key drivers, and streamline workflows, empowering teams to make more informed investment decisions.
In December 2024, Exabel was acquired and is now part of the BattleFin Group
