According to Preqin Assets under management, will surge to more than $17tn by 2025.
They expect AUM growth in alternative assets to average 9.8% per year to 2025. Persistently low-interest rates will attract investors of all types drawn to the promise of outperformance, diversification, and lower correlation with public markets. Their forecast is supported by their Future of Alternatives 2025 survey, in which 81% of investors said they expect to increase allocations to alternatives.
The private equity story can be great; it can also be dreadful.
If you decide to allocate any of your capital to private equity, the level of due diligence you need is even more than you take for public markets. I can’t stress enough, those that jump in without thorough analysis can get burned.
Is it possible to find opportunities? Yes. As always you need to know what you are doing.