Wednesday, February 16th, 2022 and is filed under Industry Reporting
We recently released our January Private Placement Insights report. See the highlights from the report below, or if you are a Premium Reporting subscriber, log in now to see the entire report. If you don’t have access, you can request a free trial.
Preqin recently released its updated forecasts for growth in private markets. The firm expects private market AUM to expand from its current level of $13.2 trillion to more than $23 trillion by 2026, with 15% annualized growth. Private equity and private debt are expected to increase the most through this period. Real estate, infrastructure, and hedge fund assets are forecast to increase modestly.
Part of the continued expansion into private markets is their continued outperformance. According to Preqin, private market strategies have outperformed global stocks for the last 13 years over all rolling time periods, with lower volatility.
Preqin also recently released a study on interest rates and private market performance. The firm reported that two segments, real estate and infrastructure, exhibited the highest positive performance correlation to rising rates, with performance in real estate actually higher than in times of flat rates. While returns were still positive for other categories in rising rate scenarios, venture capital and private debt exhibited the widest gap in returns in flat and rising rate markets (meaning returns were eroded the most by rising rates), and venture capital posted the strongest negative correlation to rising rates.
For illustrative purposes only.
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Chart and data as of January 31, 2022, based on programs activated on the AI Insight platform as of this date.
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