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Laxman Pai, Opalesque Asia: Industry estimates project private markets growing from $13 trillion today to more than $20 trillion by 2030, says BlackRock's 2025 Private Markets Outlook.
The brightest days for private markets are still ahead, driven by higher investment activity, elevated-but-lower financing costs, and greater demand for long-term capital, the report said.
"Private debt continues to expand globally, and into new avenues of finance, with wide performance dispersion depending on borrower size and sector," it said.
Private debt continues to grow, cementing its status as a sizable and scalable asset class for a wide range of long-term investors. Totaling more than US$1.6 trillion in global AUM, it represents roughly 10% of the US$16.4 trillion alternative investment universe.
Private debt is taking on more funding that was previously executed in the public markets, which are increasingly focusing on deals that are prohibitively large for most middle-market companies. Companies are also relying on private lenders more for financing as they stay private for longer.
The definition of private debt continues to expand as private debt investors start to participate more in asset-backed finance, a US$5.5 trillion segment in the U.S. alone, according to Oliver Wyman.
Meanwhile, investors can access the transformative possibility offered by artificial intelligence through infrastructure, as well as debt, private equity, and real estate. The race to deve...................... To view our full article Click here
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