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Laxman Pai, Opalesque Asia:

A new study predicts explosive growth in private market assets under management (AUM) will reach a range of between $60 trillion to $65 trillion by the year 2032 - increasing at more than twice the rate of public assets.

According to new research by global consultancy firm Bain & Company, by 2032, private assets will grow by a 9% to 10% compound annual growth rate (CAGR), accounting for 30% of all AUM.

Bain's findings come as wealth and asset management firms increase their private market offerings while profitability from public markets has fallen by half.

Bain's analysis, Avoiding Wipeout: How to Ride the Wave of Private Markets, estimated that the fee revenue for private market investments should double to $2 trillion by 2032, with private equity and venture capital remaining as the largest asset categories.

Other areas that are likely to expand into sizeable asset classes by 2032, according to Bain, include private alternative credit which is expected to grow at a 10% to 12% CAGR; and robust infrastructure growth which will likely maintain a 13% to 15% CAGR pace over the next decade.

Investor demand has also picked up, with institutional investors expected to increase their allocation to alternative assets by a 10% CAGR from 2022 to 2032, causing AUM to reach at least $60 trillion. Sovereign wealth funds, endowments, and insurance funds are seeking higher yields due to public market volatility and declining returns.......................

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