Private Markets Assets to Exceed $34T by 2031, Preqin Forecasts
Global private markets assets under management are forecast to exceed $34 trillion by 2031, according to Preqin, as improving liquidity, shifting investor allocations and expanding investment opportunities support renewed fundraising growth.
The BlackRock-owned data provider’s annual “Private Markets in 2031” report projects continued expansion across private equity, private credit, venture capital and infrastructure, while emphasizing that investment discipline will increasingly determine returns.
Private equity assets are expected to reach $11.6 trillion by 2031, supported by improving performance and capital distributions. Growth equity and secondaries strategies are projected to expand faster than traditional buyouts, although wide differences in manager outcomes will keep selection and underwriting central to investment decisions.
Private credit fund assets are forecast to surpass $5 trillion, with evergreen vehicles expected to grow faster than major closed-end strategies. Preqin sees additional opportunities as lending expands beyond corporate borrowers into asset-based finance and other areas not fully captured by conventional fund estimates.
Infrastructure assets are projected to reach $2.74 trillion, representing annualized growth of 9.8%. Demand for power, energy security, digital connectivity and more resilient supply chains is expected to support investment across sectors and regions.
Venture capital assets could reach $3.79 trillion under Preqin’s base case. Artificial intelligence is expected to lower barriers to company formation and create opportunities for businesses developing applications, although adoption rates could influence valuations, fundraising and exits.
North America is forecast to remain the largest regional market, with more than $23 trillion in assets by 2031. Europe is expected to exceed $7 trillion, while Asia-Pacific approaches $3 trillion.
“As private markets enter a new phase of growth, returns are likely to be driven less by broad market tailwinds and more by effective manager selection, underwriting discipline, and operational value creation,” said Cameron Joyce, global head of Preqin private markets research.