Asia seen to drive global alternative AUM growth, says Preqin

Photo by Thomas Griger via DealStreetAsia

Global alternative assets under management (AUM) across all alternative classes is expected to grow 9.8 per cent through to 2025, and the bulk of the growth in private markets is expected to take place in Asia Pacific, according to market research firm Preqin.

In its latest forecast, Preqin expects global AUM in alternatives to increase by 60 per cent at the end of 2025, outpacing the global GDP and inflation. Private equity already the largest asset class with $4.42 trillion in AUM, is expected to more than double over the next five years.

Private debt assets, on the other hand, is seen to grow 11.4 per cent per year while all other asset classes are expected to grow at a rate of 5 per cent per year or less.

In Asia Pacific, Preqin sees AUM growing from $1.6 trillion this year to $4.97 trillion in 2025 on the back of the region’s lower penetration rate and faster GDP growth than in the US and Europe.

Preqin Alternative AUM

AUM growth is expected to be strongest in the private equity market, according to David Lowery, Head of Research Insights at Preqin, who penned the blog post on the predictions.

“Private equity assets have displayed their resilience during times of economic stress and have generated returns superior to other asset classes. With the market less mature in fast-growing Asia, a large proportion of the market growth will come from that region,” Lowery said.

In a separate post, Preqin said it expects PE and venture capital funds to fly higher as institutional investors continue to turn away from actively managed public equity funds.

“We predict that PEVC will swallow an even larger share of the alternatives pie, with its proportion of alternatives AUM rising from 42 per cent in 2019 to 53 per cent in 2025,” Preqin said, adding that low-interest rates will continue to support the financing of buyout funds.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.