HNW investors' demand driving private equity growth

HNWIs becoming more sophisticated

Private equity is on a fast growth track. According to Deloitte, GlobalData’s proprietary forecast, global private equity assets under management (AUM) reached $4.5trn in 2019.

In its data, Blackrock noted that private alternatives have more than tripled since 2007, increasing from $2.5trn to $8trn with private equity driving most of that growth. Over the past decade, private equity assets have increased at a compound annual growth rate (CAGR) of 11%. GlobalData's outlook is for private equity to continue its growth trajectory at a CAGR of 7.4% over the period from 2019 to 2024. So, what is driving private equity's growth? There are several contributing factors ranging from high-net-worth (HNW) individuals' greater demand for private equity investment to new Fi...