Key Takeaways
- • Global alternatives assets under management are forecast to reach US$29.2 trillion by 2029 and exceed US$30 trillion by 2030, nearly doubling from US$16.8 trillion at end-2023, according to Preqin's Future of Alternatives 2029 report.
- • The alternatives industry will grow at an annualized rate of 9.7% through 2029, a deceleration from the 10.5% growth recorded during 2017–2023, reflecting softer expectations for private equity and venture capital markets and more challenging macroeconomic conditions.
- • Secondaries strategies are positioned as the fastest-growing segment within alternatives, with projected annualized growth of 13.1%, driven by strong demand from private wealth investors seeking liquidity solutions in a buyer's market environment.
- • Private equity will remain the largest private capital asset class, forecast to more than double from US$5.8 trillion in end-2023 to US$12.0 trillion by 2029, expanding at a 12.8% annualized growth rate.
- • Private wealth channel expansion and new investor access to private markets are key growth drivers, though geopolitical risks and a multipolar world order are expected to present both opportunities and challenges for alternative asset managers.
Summary
The global alternatives industry is on a trajectory to exceed US$30 trillion in assets under management by 2030, according to research from Preqin, a London-based data and research provider specializing in alternative assets. The industry is expected to grow from US$16.8 trillion at the end of 2023 to US$29.2 trillion by 2029, representing an annualized growth rate of 9.7% over the six-year period. While substantial in absolute terms, this growth rate marks a deceleration from the 10.5% annualized expansion recorded during 2017–2023, reflecting more conservative market outlooks for core private capital segments.
The slowdown is primarily attributable to softer expectations for private equity and venture capital markets, compounded by macroeconomic headwinds that are likely to persist relative to pre-pandemic conditions. Cameron Joyce, global head of research insights at Preqin, noted that while policy rates are expected to decline, investors must navigate evolving geopolitical risks and the emergence of a multipolar world order, which presents a new complexity of investment opportunities and risks for alternative asset managers.
Within the alternatives universe, secondaries strategies are emerging as the fastest-growing segment, with Preqin forecasting annualized growth of 13.1% through 2029. The secondaries market currently operates as a buyer's market, with investment portfolios facing liquidity constraints and creating demand for secondary positions. This dynamic is expected to be sustained by the private wealth channel, where secondaries strategies offer inherent advantages for investors new to private markets seeking managed exposure to established positions.
Private equity is projected to remain the largest private capital asset class, with assets forecast to more than double from US$5.8 trillion at end-2023 to US$12.0 trillion by 2029, reflecting an annualized growth rate of 12.8%. The expansion of the private wealth channel and increased access for individual investors to alternative assets are cited as key drivers of industry growth, signaling a structural shift in how capital is deployed across the alternatives landscape.
The slowdown is primarily attributable to softer expectations for private equity and venture capital markets, compounded by macroeconomic headwinds that are likely to persist relative to pre-pandemic conditions. Cameron Joyce, global head of research insights at Preqin, noted that while policy rates are expected to decline, investors must navigate evolving geopolitical risks and the emergence of a multipolar world order, which presents a new complexity of investment opportunities and risks for alternative asset managers.
Within the alternatives universe, secondaries strategies are emerging as the fastest-growing segment, with Preqin forecasting annualized growth of 13.1% through 2029. The secondaries market currently operates as a buyer's market, with investment portfolios facing liquidity constraints and creating demand for secondary positions. This dynamic is expected to be sustained by the private wealth channel, where secondaries strategies offer inherent advantages for investors new to private markets seeking managed exposure to established positions.
Private equity is projected to remain the largest private capital asset class, with assets forecast to more than double from US$5.8 trillion at end-2023 to US$12.0 trillion by 2029, reflecting an annualized growth rate of 12.8%. The expansion of the private wealth channel and increased access for individual investors to alternative assets are cited as key drivers of industry growth, signaling a structural shift in how capital is deployed across the alternatives landscape.
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