Long-term trends shaping alternative assets include the emergence of private wealth as a key source of capital

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Global alternatives assets under management (AUM) will surge past $30tn by 2030, according to Preqin's Future of Alternatives 2029 report. Preqin's model, which includes fundraising and performance forecasts across alternative asset classes, strategies, and regions, predicts total AUM of $29.22tn by the end of 2029, up 74.1% from $16.78tn at the end of 2023.

Cameron Joyce, Global Head of Research Insights at Preqin, said: ‘Global alternatives markets continue to evolve rapidly, especially as individual investors’ access opens up, as the private wealth channel’s growth continues to gather pace.

‘While policy rates are expected to decline, macroeconomic conditions are likely to remain more challenging than during the pre-pandemic era, and our forecast of slower industry growth reflects that. Investors are navigating evolving geopolitical risks as we move towards a multipolar world order – which presents a new set of investment opportunities and risks.’

Private equity AUM is forecast to double by the end of 2029, up from 2023, from $5.80tn to $11.97tn. Fundraising is likely to be boosted by non-institutional investors, such as family offices, wealth managers, private banks, and individual investors, who currently have relatively low exposures to the asset class.

Total VC AUM is forecast to reach $3.59tn by 2029 from $1.85tn in 2023. Early-stage is expected to experience the strongest annualized AUM growth from 2023 to 2029 at 13.2%, followed by the ‘venture (general)’ category at 11.1%. Late-stage VC (8.1%) will be weighed down by the current challenging exit environment, plus greater regulatory scrutiny of M&A.

Private debt AUM is forecast to reach $2.64tn by 2029, from $1.50tn in 2023, and returns are expected to rise further. The 2017–2023 average IRR of 8.1% is expected to rise to 12.0% over 2023–2029 for the asset class, with distressed debt forecast to average 13.4% for the period.

The total for hedge funds AUM is projected to reach $5.73tn by 2029, from $4.53tn in 2023, a nominal annual growth rate of 4.0%, the lowest growth rate of all the main alternative asset classes. Although by AUM, hedge funds are projected to be second only to private equity by 2029.

Private real estate AUM is forecast to reach $2.66tn by 2029 from $1.61tn in 2023. In the asset class, annualized fundraising growth of 5.1% from end-2023 to 2029 is forecast, outpacing broader private capital by 0.9ppts.

Lastly, unlisted infrastructure is experiencing a prolonged slowdown in fundraising, as the asset class rebalances following a flood of capital in 2022 and higher interest rates affecting the deals market. But Preqin forecasts stronger fundraising again from 2026 onwards which, along with better performance, will push total private infrastructure AUM from $1.27tn in 2023 to $2.35tn by 2029.

Private wealth and a weak exit market are expected to drive secondaries to an annualized growth rate of 13.1%, which would make secondaries the fastest-growing area of alternatives from the end of 2023 to 2029. As investors’ portfolios face liquidity constraints, secondaries remain a buyer’s market.


The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.