The domain of private markets has seen a remarkable swell in assets under management (AUM), reaching a staggering $14.7 trillion. This expansion, calculated at an annualized rate of 12.8% from 2012 to 2022, has eclipsed the growth rates of public stocks and bonds significantly.
Despite the hurdles imposed by high interest rates and a scarcity of exits, Limited Partners (LPs) remain optimistic regarding private market allocations. A recent analysis delves into the potential further swelling of private capital AUM within the coming half-decade.
- Projections suggest that the global private capital pool could surge to nearly $20 trillion by 2028, and under a favorable macroeconomic climate, it may even approach $24 trillion.
- The anticipated growth is not expected to be uniform across all strategies. Private equity (PE), private debt, and real assets are predicted to experience a sharper ascent compared to venture capital (VC) and real estate.
- The secondaries market is also set to be a significant contributor to this expansion, with forecasts indicating a rise from $462.5 billion to over $700 billion in a baseline scenario.
Contents at a Glance:
- Key Insights
- Market Overview
- Private Equity Insights
- Venture Capital Analysis
- Private Debt Overview
- Real Estate Market
- Insights on Real Assets
- Growth in Secondaries
- Funds of Funds Outlook
- Appendix: Research Methodologies
