Sign up<\/a>\u00a0to receive future editions, straight to your inbox.<\/p>\nInvestments in alternatives are expected to top $32 trillion by 2030, boosted in large part by growth from wealthy investors, according to a report from Preqin.<\/p>\n
Total assets under management in alternatives \u2013 including private equity, hedge funds, real estate, venture capital, infrastructure, natural resources and private credit \u2013 are forecast to increase by 60% over the next five years, according to the private markets research firm.<\/p>\n
A recovery in IPOs and mergers, falling interest rates and the AI boom will all drive a new growth cycle in private markets, according to the report. Assets in private credit are expected double to $4.5 trillion by 2030.<\/p>\n
Yet even as deal activity and exits start to increase, fundraising from institutional investors continues to fall due to a lack of distributions and poor performance in many funds. Total fundraising for private equity plunged from a peak of $676 billion in 2023 to under $500 billion this year, the report said.<\/p>\n
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To power the next growth wave, the private equity industry is betting on wealthy investors. The report said ultra-high-net-worth individuals (typically defined as investors with $30 million or more), family offices and private-wealth managers will account for at least 30% to 40% of flagship fund capital “in future cycles.”<\/p>\n
“With institutional rebalancing, private wealth can act as an alternative source of capital,” the report said. “Many larger managers are anticipating a doubling of private wealth capital raised in the short term. “<\/p>\n
The big question is whether family offices and the ultra-wealthy are also following institutional investors out the door.<\/p>\n
Family office allocations to private equity fell from 26% of their portfolios in 2023 to 23% in 2025, according to a Goldman Sachs survey of family offices. At the same time, family offices increased their allocation to public stocks.<\/p>\n
Family offices are also focusing more on direct investments, bypassing funds and buying stakes in companies directly, according to surveys.<\/p>\n
\u00a0With deal activity returning, some surveys suggest family offices and ultra-wealthy investors are planning to start investing more. A survey from BNY Wealth showed that 55% of family offices surveyed plan to increase their allocation to private equity funds in the next 12 months \u2013 the highest of any asset class.<\/p>\n","protected":false},"excerpt":{"rendered":"Shironosov | Istock | Getty Images A version of this article appeared in CNBC’s Inside Alts newsletter, a…\n","protected":false},"author":2,"featured_media":273016,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[88840,28,122,13951],"class_list":{"0":"post-273015","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-alternative-investing","9":"tag-business","10":"tag-business-news","11":"tag-suppress-zephr"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/273015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=273015"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/273015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/273016"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=273015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=273015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=273015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}