TLDR:
- Global alternatives market expected to reach $29.2 trillion by 2029 and potentially exceed $30 trillion by 2030.
- Private equity to double in AUM by 2029, while secondaries sector expected to see fastest growth.
The global alternatives market is projected to experience robust growth in the coming years, with industry analysts at Preqin forecasting a value of $29.2 trillion by 2029, up from nearly $17 trillion in 2023. While the market could surpass $30 trillion by 2030, this is not included in the official forecast. Private equity is expected to remain the largest sector, doubling in AUM from $5.8 trillion in 2023 to $12.0 trillion by 2029, with an annual growth rate of 12.8%. Secondaries are anticipated to be the fastest-growing sector at 13.1%, driven by private wealth and weak exit markets. AI is expected to fuel early-stage venture capital growth at an annualized rate of 13.2%, while global private real estate AUM is forecasted to reach $2.7 trillion by 2029. Global hedge fund AUM is predicted to surpass $5.7 trillion by 2029, despite performance-based growth being impacted by outflows. The report highlights evolving geopolitical risks and a shift towards a multipolar world order, presenting new investment opportunities and risks for investors.
