(OPalesque) Between the end of 2020 and the end of 2025, global assets under management (AUM) in alternatives is expected to increase by 60%, equal to a CAGR of 9.8%, said Preqin. The rate of growth should far outpace global GDP and inflation, with significant real appreciation across the alternative asset space, it said.
The distribution of this growth will not be even. Private equity and private debt assets are set to grow by 15.6% and 11.4% per year, respectively. At the other end of the scale, all other asset classes are expected to grow at a rate of 5% per year or less.