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Laxman Pai, Opalesque Asia:

The alternative assets industry is set to expand across all asset classes over the next five years and alternative investment assets will increase by 59% to $14 tn by 2023, said a study.

Hedge funds will grow by 31%, rising from $3.6 tn as at December 2017 to $4.7tn, according to a a Preqin study titled, 'The Future of Alternatives: The Classes of 2023'.

As at December 2017, the private equity and hedge fund industries represent a combined $6.7tn, or 75%, of the $8.8tn alternative assets industry.

"While industry participants are predicting this share to decrease over the next five years to 69%, as other alternative asset classes look set for faster growth, these industries are expected to contribute the majority (56%, $2.9tn) of the growth in dollar terms over the next five years," said the study.

The private debt market is predicted to double in size, reaching $1.4tn in 2023 and, in doing so, overtake the real estate market to become the third largest alternatives industry.

Only the hedge fund industry is expected to grow at a slower pace than the real estate industry over the next five years, at 31% and 50% respectively, it said.

Representing $0.7tn (8%) of the alternative assets industry, the real assets universe is predicted to be the fastest-growing area of alternatives over the next five years.

Driven by natural resources, real assets are expected to represent 13% of the $14tn alternatives industry by......................

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