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Laxman Pai, Opalesque Asia: The world's largest asset manager BlackRock expects market volatility to carry into 2024, bringing with it a major opportunity for private markets to benefit from the continued chaos.
That's the view expressed in BlackRock's 2024 private markets outlook, 'Opportunities in mega forces'.
In 2024 private markets outlook the $9.1 trillion firm outlined what it calls the "mega forces" - major structural shifts that are changing the way the world works - including digital disruption and AI, the transition to a low-carbon economy, demographic changes, the future of finance and geopolitical fragmentation.
As an asset class, infrastructure is having a moment. As the backbone of the economy, infrastructure offers steady cashflows with long-term, inflation-linked contracts that can span decades - a significant advantage in a volatile environment.
The need to reconfigure the global energy system to decarbonize the economy is one driving mega force that presents considerable long-term private markets investment opportunities in infrastructure development, particularly around energy storage, the electrification of transport, and alternative fuels for aviation and marine.
Meanwhile, the BlackRock Investment Institute Transition Scenario predicts that the adoption of low-carbon energy sources could result in an average of USD 4 trillion per year of capital investment in the global energy system through 2050, up from around $2 trillio...................... To view our full article Click here
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