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Laxman Pai, Opalesque Asia:

The global alternatives assets under management (AUM) are expected to reach $24.5tn by the end of 2028, compared to an estimated $16.3tn at the end of 2023, said a study. This represents a forecast annualized growth rate of 8% over the forecast period of 2022 to 2028.

The Future of Alternatives 2028 report by Preqin also found that global private capital fundraising3 is set to reach $1.49tn by 2028, from $1.32tn in 2022.

"While the growth of capital being deployed in alternative assets is expected to stabilize, the dry powder that the industry has available to deploy is still expected to increase. It is forecast to reach $4.7tn in 2028," the report pointed out.

Meanwhile, Global hedge fund AUM is expected to increase to $5.2tn by 2028. This represents a relatively modest 3.6% annualized growth rate over the forecast period. Hedge funds should continue to generate attractive risk-adjusted returns, but gradual net investor outflows will weigh on growth.

Private debt has weathered another challenging year, yet investors say they are satisfied with the results. Responses to the Preqin Investor Outlook: Alternative Assets, H2 2023 suggest the outlook for private debt remains bright, despite macroeconomic difficulties. Of survey respondents, 90% said that private debt met or exceeded expectations.

Preqin's forecast models show that global private debt AUM will grow at a compound annual growth rate (CAGR) of 11% from 2022 t......................

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