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Laxman Pai, Opalesque Asia:

Between the end of 2020 and the end of 2025, global assets under management (AUM) in alternatives is expected to increase by 60%, equal to a CAGR of 9.8%, said Preqin.

The rate of growth should far outpace global GDP and inflation, with significant real appreciation across the alternative asset space, it said.

The distribution of this growth will not be even. Private equity and private debt assets are set to grow by 15.6% and 11.4% per year, respectively. At the other end of the scale, all other asset classes are expected to grow at a rate of 5% per year or less.

The bulk of AUM growth in private markets is expected to take place in Asia-Pacific, where we predict AUM will swell from $1.62tn in 2020 to $4.97tn in 2025.

The twin factors of lower penetration rates and faster GDP growth than more established markets in the US and Europe will attract significant interest from both investors and fund managers.

"We expect AUM growth to be strongest in the private equity market. Private equity assets have displayed their resilience during times of economic stress and have generated returns superior to other asset classes. With the market less mature in fast-growing Asia, a large proportion of the market growth will come from that region," said David Lowery, SVP and Head of Research Insights, Preqin.

Private debt AUM growth is not far behind that of private equity. The asset class is likely to be buoyed by the global hunt fo......................

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