The private capital market of Asia has attained 5X growth over the past two decades, going from $2.3 trillion in 2009 to $13.1 trillion in 2023. Associated with that growth is a shift in dynamics in the way business operates under different asset classes.
We have listed some current trends in the private market and future predictions observed while attending the SuperReturn Asia 2024 conference in Singapore.
Private markets to grow about 15 percent by 2030
The world’s total assets under management sit at about $120 trillion, and the private markets account for about 10 percent. Mark Wiedman, Senior Managing Director, Head of Global Client Business at BlackRock predicts that globally, there will be a larger allocation to private markets in the next six years.
“We expect private markets to grow from 10 percent today ($13 trillion) to 12 to 15 percent ($17 to $20 trillion) of client portfolios (across the world) through the end of the decade,” said Wiedman.
Despite the Asian private market currently experiencing a lull in activity, globally, fund managers have invested $3.4 trillion in private markets since 2022. This is in contrast to the $300 billion (withdrawn or sold investments) managers took out of the public market in that period. Thus, a reason for Wiedman to endorse that private markets offer room for new investment.
“The biggest potential change is going to be in wealth management, but also in individually owned retirement systems, defined contribution systems,” said Wiedman.
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