Key Takeaways
- • Preqin forecasts the global alternatives market will reach $29.2 trillion in AUM by 2029, up from $16.8 trillion at end-2023, representing a 9.7% annualized growth rate and potentially exceeding $30 trillion by 2030.
- • Private equity will more than double in size from 2023 to 2029, growing from $5.8 trillion to $12.0 trillion at a 12.8% annualized rate, cementing its position as the largest alternatives sector and representing approximately 6.0% of combined public and private equity markets by end-2024.
- • Secondaries markets will be the fastest-growing alternatives sector at 13.1% annualized growth, driven by private wealth demand and liquidity constraints in investor portfolios creating a favorable buyer's market with weak exit environments.
- • Forecast growth has moderated to 9.7% annually (2023-2029) from 10.5% (2017-2023), reflecting headwinds in private equity and venture capital markets as macroeconomic conditions remain more challenging than the pre-pandemic period.
- • Individual investor access expansion and private wealth channel growth are reshaping the alternatives landscape, according to Cameron Joyce, global head of Research Insights at Preqin, amid evolving geopolitical risks and a shift toward a multipolar world order.
Summary
The global alternatives market is positioned for substantial expansion over the next six years, with Preqin's industry forecast projecting assets under management will reach $29.2 trillion by 2029, compared to $16.8 trillion at the end of 2023. While the official forecast stops at 2029, market observers anticipate the sector could exceed $30 trillion by 2030, reflecting the sector's robust momentum despite a moderating growth trajectory.
The forecasted annualized growth rate of 9.7% between 2023 and 2029 represents a meaningful deceleration from the 10.5% rate achieved during the 2017-2023 period. This slowdown reflects challenging macroeconomic conditions and a weaker private equity and venture capital environment compared to pre-pandemic levels. Cameron Joyce, global head of Research Insights at Preqin, characterized the market as evolving rapidly, with macroeconomic headwinds likely to persist even as policy rates decline. Geopolitical risks and the emergence of a multipolar world order are creating both investment opportunities and constraints for institutional players.
Private equity will remain the dominant alternatives sector, with AUM expected to more than double from $5.8 trillion in 2023 to $12.0 trillion by 2029, growing at a 12.8% annualized rate. This expansion will position private equity at approximately 6.0% of the combined public and private equity markets by end-2024. Meanwhile, secondaries markets are emerging as the fastest-growing segment within alternatives at 13.1% annualized growth, benefiting from a buyer's market dynamic driven by liquidity constraints and weak exit environments. Private wealth investors are expected to drive sustained demand within the secondaries space.
The forecasts underscore a structural shift in how alternatives are accessed and deployed, particularly through expanding individual investor participation and accelerating private wealth channel adoption. These dynamics will shape capital flows and valuations across the alternatives ecosystem through 2030.
The forecasted annualized growth rate of 9.7% between 2023 and 2029 represents a meaningful deceleration from the 10.5% rate achieved during the 2017-2023 period. This slowdown reflects challenging macroeconomic conditions and a weaker private equity and venture capital environment compared to pre-pandemic levels. Cameron Joyce, global head of Research Insights at Preqin, characterized the market as evolving rapidly, with macroeconomic headwinds likely to persist even as policy rates decline. Geopolitical risks and the emergence of a multipolar world order are creating both investment opportunities and constraints for institutional players.
Private equity will remain the dominant alternatives sector, with AUM expected to more than double from $5.8 trillion in 2023 to $12.0 trillion by 2029, growing at a 12.8% annualized rate. This expansion will position private equity at approximately 6.0% of the combined public and private equity markets by end-2024. Meanwhile, secondaries markets are emerging as the fastest-growing segment within alternatives at 13.1% annualized growth, benefiting from a buyer's market dynamic driven by liquidity constraints and weak exit environments. Private wealth investors are expected to drive sustained demand within the secondaries space.
The forecasts underscore a structural shift in how alternatives are accessed and deployed, particularly through expanding individual investor participation and accelerating private wealth channel adoption. These dynamics will shape capital flows and valuations across the alternatives ecosystem through 2030.
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