Unlisted assets under management are forecast to top $17tn by 2025

Historically low interest rates and high stock valuations are driving return-hungry investors to rush into private markets, with non-publicly listed assets under management expected to rise 60 per cent between 2020 and 2025.

Alternatives — a category of unlisted assets that include private equity, private debt, hedge funds, real estate, infrastructure and natural resources — are set to surpass $17tn in AUM within the next four years. Private equity and private debt will be the main drivers of this growth, according to data provider Preqin.

The private capital industry has grown to exceed $7tn in the past few years. Projected growth is expected to be strongest in Asia, with Preqin citing low penetration rates and fast GDP growth as attractive factors.

Read more/Source: Financial Times