Preqin: global assets will grow by 2023
25 October 2018 London
Image: Shutterstock
By 2023, private equity will be significantly larger than today, according to specialist data firm, Preqin.
In a new paper published this week covering the future of alternatives, Preqin predicted that by 2023, global assets under management will stand at around US $14 trillion.
Mark O鈥橦are, chief executive of Preqin, predicted there will be 34,000 fund management firms active globally (a rise of 21 percent versus 2018).
Preqin said the growth will be dependant on alternatives鈥� track record and enduring ability to deliver superior risk-adjusted returns to its investors as well as investors鈥� need for alpha鈥攚hether that is found in private capital or public markets.
Preqin predicted growth will also be dependent on the steady decline in the number of listed stocks, as private capital is increasingly able to fund businesses through more of their lifecycle, Preqin said.
The data firm stated that the importance of technology in the future should not be underestimated.
It said: 鈥淭echnology (especially blockchain) will facilitate private networks and help investors and fund managers transact and monitor their portfolios, and reduce costs versus public markets.鈥�
Preqin added: 鈥淭he mass affluent around the world would like to increase their investment in private capital if only the structures and vehicles (and regulation) permitted; technology will help.鈥�
When considering emerging markets, Preqin said the Chinese venture capital industry already matches that of the US in size.
鈥淔urther emerging markets growth will be a 鈥榙ouble whammy鈥� of gross domestic product growth and higher penetration of alternative assets鈥�, Preqin predicted.
In a new paper published this week covering the future of alternatives, Preqin predicted that by 2023, global assets under management will stand at around US $14 trillion.
Mark O鈥橦are, chief executive of Preqin, predicted there will be 34,000 fund management firms active globally (a rise of 21 percent versus 2018).
Preqin said the growth will be dependant on alternatives鈥� track record and enduring ability to deliver superior risk-adjusted returns to its investors as well as investors鈥� need for alpha鈥攚hether that is found in private capital or public markets.
Preqin predicted growth will also be dependent on the steady decline in the number of listed stocks, as private capital is increasingly able to fund businesses through more of their lifecycle, Preqin said.
The data firm stated that the importance of technology in the future should not be underestimated.
It said: 鈥淭echnology (especially blockchain) will facilitate private networks and help investors and fund managers transact and monitor their portfolios, and reduce costs versus public markets.鈥�
Preqin added: 鈥淭he mass affluent around the world would like to increase their investment in private capital if only the structures and vehicles (and regulation) permitted; technology will help.鈥�
When considering emerging markets, Preqin said the Chinese venture capital industry already matches that of the US in size.
鈥淔urther emerging markets growth will be a 鈥榙ouble whammy鈥� of gross domestic product growth and higher penetration of alternative assets鈥�, Preqin predicted.
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