Retail investors set to drive next wave of alternatives AUM growth

$23.3trn AUM in the next five years

Valeria Martinez
clock • 3 min read

Private capital assets under management are set to double by 2027, partly fueled by greater retail investor interest in alternatives, a report by data provider Preqin shows.

Despite a challenging macroeconomic outlook, total global AUM for private markets is expected to grow to $18.3trn by the end of 2027, from $9.3trn at the end of 2021, according to the report, titled The Future of Alternatives in 2027. When hedge funds are included, alternative assets AUM are expected to reach $23.3trn in the next five years, up from $13.7trn at the end of 2021. The portion of retail investor involvement in private markets is likely to remain in the low single digits, Preqin said, although the firm expects it to increase significantly.  FCA warns alternative investm...

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