Investors’ appetite for private assets – those that are unlisted on a securities exchange – has exploded in recent years.
According to research by McKinsey, total assets under management in private markets shot up from USD 4.7 trillion in 2016 to USD 7.3 trillion by the end of 2020. And fund-raising looks set to hit new highs in 2021 after a short blip in 2020 due to the pandemic, showing investors remain confident in the asset class in the post-covid era.
What’s more, the rise of private assets has become a global phenomenon: whereas in the past the market was dominated by US investors, the enthusiasm of investors in the rest of the world to allocate to private markets is catching up.
What’s behind the huge increase in the size of the private market in recent years?
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