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Laxman Pai, Opalesque Asia: The global alternatives industry's assets under management (AUM) are projected to reach $29.2 trillion by the end of 2029, fueled by the accelerated democratization of private markets, enhanced access for individual investors, and growing demand for portfolio diversification from institutional investors, said a study.
According to the 2024 Global Alternatives Fund Survey, the AUM climbed from $13.3tn at the end of 2021 to $17.6tn by the midpoint of 2024.
"The last two years have seen growing geopolitical tension, escalating conflict in the Middle East, heightened inflation and interest rates, and the explosion of generative artificial intelligence (GenAI). Despite this volatile backdrop, alternative investments - which we define as including private equity (PE) and credit, real estate, real assets and infrastructure, commodities, hedge funds, and digital assets - have enjoyed continued growth," said the study.
Private equity assets are expected to reach $12 trillion in 2029, (up from $5.8 trillion as of the end of 2023), making it the largest component of the global alternatives market. The second-largest element, hedge funds, will jump to $5.7 trillion at the end of 2029 from $4.5 trillion at the end of 2023.
The survey findings show that private equity is a priority, with 37% of firms planning to target individual investors with this asset class.
The survey shows that the balance of institutional investors view altern...................... To view our full article Click here
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