{"id":72383,"date":"2022-10-05T05:07:13","date_gmt":"2022-10-05T05:07:13","guid":{"rendered":"https:\/\/pr.asianetpakistan.com\/?p=99363"},"modified":"2022-10-05T05:07:13","modified_gmt":"2022-10-05T05:07:13","slug":"global-private-capital-aum-to-double-to-18-3tn-by-2027-preqin-forecasts","status":"publish","type":"post","link":"https:\/\/jordannewsgazette.com\/global-private-capital-aum-to-double-to-18-3tn-by-2027-preqin-forecasts\/","title":{"rendered":"Global Private Capital AUM to Double to $18.3tn by 2027\u2014Preqin Forecasts"},"content":{"rendered":"
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Venture capital set to grow to over $4tn in global AUM, while North America will drive the largest share of global asset flows<\/b><\/p>\n

LONDON<\/span>, Oct. 5, 2022<\/span> \/PRNewswire\/ — Preqin<\/a>, the global leader empowering the alternatives community with essential data and insights, has published its\u00a0\u00a0Future of Alternatives 2027\u00a0report<\/a><\/i>. The report, published every two year.<\/p>\n

0s0, shows that private capital invested is set to double by 2027, while retail interest in alternatives is predicted to fuel the next wave of industry growth.<\/p>\n

Despite a challenging macroeconomic outlook, demand for private capital continues to show resilience, with total global assets under management (AUM) expected to almost double to $18.3tn by the end of 2027, from $9.3tn at the end of 2021. While the compound annual growth rate is expected to slow compared to recent years (to 11.9% annually between 2021-2027, from 14.9% between 2015-2021), investor demand remains strong as investors continue to seek alternative sources of returns in an uncertain economic environment. When hedge funds are included, alternative assets AUM are expected to reach $23.3tn by the end of 2027, up from $13.7tn at the end of 2021 (growth of 70.7%). Across the broader industry, hedge funds are likely to act as a drag to overall growth.<\/p>\n

Retail investment set to drive the next frontier in private markets<\/i> <\/b><\/p>\n

While private capital allocations have increasingly become a core part of institutional investor portfolios, high net worth investors have for the most part remained allocated to traditional investments. A lack of products that are tailored for retail participation has been one of the key barriers, but that is beginning to change, as the industry innovates, and the regulatory environment evolves. Preqin expects growing retail investor interest in private investments \u2013 especially among high-net-worth investors \u2013 to be one of the key drivers of private markets growth in the future, particularly as a higher portion of institutional investors are approaching their current target allocation to alternative assets and may be forced to revise their target based on market conditions.<\/p>\n

Christoph Knaack, CEO of Preqin, says:<\/b>\u00a0“Private markets have been in a super cycle over the past decade. Due to lower risk adjusted returns in most traditional public asset classes, investors have had to look further afield to find alternative sources of return. However, the deterioration of the macroeconomic climate over the past year, from rising inflation and interest rates to geopolitical threats, means investors are now operating in a more challenging environment.<\/i><\/p>\n

“Against this backdrop, we expect to see more sustained growth in the asset classes which have historically performed well in more volatile markets, and which are able to provide inflation protection, such as infrastructure, natural resources, and private debt. Continued demand for these asset classes, coupled with a growth of retail investor interest in building allocations to alternatives, will drive private capital AUM to new heights over the next five years.”<\/i><\/p>\n

Key findings from the\u00a0Future of Alternatives 2027<\/i> report include:<\/b><\/p>\n