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Laxman Pai, Opalesque Asia:

The private equity industry's assets under management (AUM) crossed the $4tn mark, which puts private equity on course to reach $5tn in AUM by the end of 2022.

The asset class is benefiting in part from widespread anticipation of a market downturn among both fund managers and investors, said Preqin.

Almost nine out of 10 investors expect to maintain or increase their allocations in 2020, and almost half of fund managers think the position of the market cycle will have a big impact on private equity in the months ahead.

Private equity fundraising surpassed $500bn for the fourth consecutive year in 2019. Although total numbers are slightly lower than the previous year, the average fund size grew, and the average time spent in the market decreased to 13 months, the lowest level ever seen.

Christopher Beales, Executive Editor - 2020 Preqin Global Private Equity and Venture Capital Report said: "Private equity's enormous expansion seems to be accelerating. The industry is on course to add almost a trillion dollars a year for the next five years, an astonishing rate of growth. Investor demand has been strong and sustained, and fund managers have been able to offer them robust returns even in a low-interest environment, fuelling a virtuous cycle of growth."

Christopher said: "But it's not all good news: the fundraising marketplace is more crowded than ever before, making it difficult for fund managers to stand out, and fo......................

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