Global alternatives markets on course to exceed $30tn by 2030 — Preqin forecasts

LONDON, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Preqin, the global leader in alternative assets data, tools, and insights, today published its Future of Alternatives 2029 report. Preqin forecasts the global alternatives industry to reach $29.2tn in assets under management (AUM) by 2029, from $16.8tn at the end of 2023. While not part of the official report forecasts, the analysis predicts the industry is on course to exceed $30tn in AUM by 2030. This signifies an annualized growth rate of 9.7% in the forecast period, 2023-end to 2029, which represents a slowdown from 10.5% during the 2017–2023 period due to softer expectations for the private equity and venture capital markets.

Private wealth and weak exit markets are expected to drive secondaries to an annualized growth rate of 13.1%, with secondaries forecast to be the fastest growing area of alternatives from 2023-end to 2029. Currently, the secondaries market remains a buyer’s market, as investors’ portfolios face liquidity constraints. Preqin anticipates ongoing demand for secondaries strategies from the private wealth channel, as they offer inherent advantages for investors that are new to private markets.

The Future of Alternatives report series forecasts the size and growth of the global alternatives industry based on Preqin’s Research Insights team’s data-driven predictive models and analysis. The report covers all alternative asset classes, including by strategy, across major global regions.

Cameron Joyce, Global Head of Research Insights at Preqin, says, “Global alternatives markets continue to evolve rapidly, especially as individual investors’ access opens up, as the private wealth channel’s growth continues to gather pace. While policy rates are expected to decline, macroeconomic conditions are likely to remain more challenging than during the pre-pandemic era, and our forecast of slower industry growth reflects that. Investors are navigating evolving geopolitical risks as we move towards a multipolar world order – which presents a new set of investment opportunities and risks.”

Private equity market to more than double while private debt performance is forecast to improve

Private equity is predicted to remain the largest private capital asset class, with Preqin forecasting it is on course to more than double in AUM from 2023-end to 2029, from $5.8tn to $12.0tn, at an annualized growth rate of 12.8%. Notably, Preqin analysts believe the asset class should represent approximately 6.0% of public and private equity markets by the end of 2024. This percentage is expected to increase over time, owing to a combination of factors, including private companies staying private for longer, take-privates, lackluster IPO markets, and an overall decline in the number of listed companies over time. Fundraising is expected to remain challenging, but growth is forecast to pick up from 2027, supported by increasing interest from private wealth investors who currently have a relatively low exposure to private equity. However, performance over the forecast period is expected to be softer than it has been, with global private equity projected to have a lower internal rate of return (IRR) compared with 2017–2023, falling to 13.4% from 15.5%.

Meanwhile, private debt’s performance is forecast to improve, as led by distressed debt. Preqin believes the 2017–2023 average IRR of 8.1% should rise to 12.0% in 2023–2029F for private debt overall, with distressed debt to average 13.4% for the period. However, the difference in performance between private debt overall and distressed debt is expected to narrow, as the global economy moves towards a relatively more settled credit environment. Overall, private debt AUM is forecast to rise from $1.5tn at 2023-end to $2.6tn by 2029.

Additional key findings include: 

  • Venture capital: Artificial intelligence is expected to be one of the factors buoying early-stage venture capital with annualized AUM growth at 13.2%, followed by venture (general) at 11.1%, from end-2023 to 2029F. Late stage venture capital (8.1% annualized AUM growth) is forecast to be weighed down by the challenging exit environment and asset valuations, as well as greater regulatory scrutiny of mergers and acquisitions.

  • Real Estate: Global private real estate AUM is forecast to continue its steady growth to $2.7tn by 2029, following 2023’s dip ($1.6tn). Preqin’s models project that value-added will see the largest IRR increase of any real estate strategy for the forecast period compared with 2020–2023, increasing by 2.1ppts to 9.6%.
  • Infrastructure: Global unlisted infrastructure AUM is forecast to reach $2.4tn in 2029, as the energy transition lifts fundraising and deals from 2027 onwards. But stronger fundraising in the second half of the forecast period (2027F–2029F), alongside higher performance compared to 2017–2023, means AUM should continue to gain ground and reach 88.0% of that in real estate by the end of 2029F.
  • Hedge funds: Global hedge funds AUM is forecast to surpass $5.7tn by 2029, but outflows are predicted to impact performance-based growth. Hedge funds have the slowest forecast annualized growth rate over the 2023-end to 2029 period for all alternative asset classes, at 4.0%.

Note to editors:

Preqin’s Future of Alternatives 2029 report series leverages a proprietary model built by the Preqin data science team, further information is available upon request.

If you would like more information or would like to speak with the report author, please contact Oliver Keyser at oliver.keyser@preqin.com

About Preqin

Preqin, the Home of Alternatives™, empowers financial professionals who invest in or allocate to alternatives with essential data and insight to make confident decisions. It supports them throughout the entire investment lifecycle with critical information and leading analytics solutions. The company has pioneered rigorous methods of collecting private data for over 20 years, enabling more than 200,000 professionals globally to streamline how they raise capital, source deals and investments, understand performance, and stay informed. For more information visit www.preqin.com.


Global alternatives markets on course to exceed $30tn by 2030 — Preqin forecasts

THỦ THUẬT HAY

Chọc phá bạn bè với 2 lỗi trên iOS làm iPhone đóng băng trong tích tắc

Một trong hai lỗi này khiến iPhone “đứng hình' gần như lập tức và bạn phải dùng tổ hợp phím để force reset máy để hoạt động lại bình thường. Lỗi còn lại chỉ cần soft reset bình thường.

Hướng dẫn chụp ảnh màn hình trên iPhone XS, XS Max và XR nhanh chóng, đơn giản

Để chụp ảnh màn hình trên điện thoại iPhone Xs, Xs Max và iPhone Xr, rất đơn giản, bạn chỉ cần nhấn đồng thời nút Side (nút nguồn) và nút tăng âm lượng.

6 cách sửa lỗi iPhone không bật được Bluetooth

Không ít người dùng iOS đang gặp phải lỗi iPhone không bật được Bluetooth. Điều này gây ảnh hưởng không nhỏ đến quá trình sử dụng. Tuy nhiên, bạn hoàn toàn có thể khắc phục được nó nếu làm theo hướng dẫn sau đây. Không

Cách chụp ảnh hiệu ứng World Cup trên Facebook và Facebook Messenger

Theo thông tin chính thức từ mạng xã hội lớn nhất Thế giới này, trước khi khai mạc World Cup 2018 một ngày, người dùng sẽ nhận được một tin nhắn trên News Feed tài khoản Facebook của mình với nội dung mời họ tham gia

Đăng ký 4G Viettel xem Youtube cũng như Facebook thoải mái

Đối với những thuê bao sử dụng 4G Viettel chắc hẳn đã trải nghiệm được sự tuyệt vời từ tốc độ của dịch vụ này nhưng chắc bạn cũng nhận ra rằng sử dụng 4G Viettel rất mau hết dung lượng. Đặc biệt khi bạn xem video trên

ĐÁNH GIÁ NHANH

Đánh giá chi tiết về thiết kế vận hành và giá bán của Mazda 2 2018

Mẫu xe cỡ B Mazda2 vừa bất ngờ được Thaco tăng giá thêm 30 triệu đồng so với tháng trước. Cụ thể, Mazda2 sedan tăng giá từ 499 lên 529 triệu đồng, trong khi đó phiên bản Mazda2 Hatchback cũng tăng từ 539 lên 569 triệu

Đánh giá Gionee S6s: Phá đảo phân khúc dưới 3,5 triệu đồng

Đánh giá chi tiết những điểm đáng đồng tiền bát gạo trên Gionee S6s. Sau khi giảm giá chính hãng đến cả triệu đồng, S6s liệu còn đáng mua ở phân...

Đánh giá nhanh khả năng chơi game của Huawei Y9 với Liên quân và PUBG

Chắc chắn Liên quân sẽ luôn luôn chơi mượt mà với các dòng máy tầm trung. Huawei Y9 có khả năng gánh được rất tốt tựa game này. Trong quá trình chơi, mình cũng không thấy có hiện tượng giật, lag hay sụt giảm khung