News Digest:

Non-publicly listed assets under management will soar by 60% in the next four years to top $17 trillion, as yield-starved investors embrace alternatives amid historically low interest rates and high equities valuations, a report released by Preqin has forecast.

The data provider tips private equity and private debt to be the principal catalysts of the expected alternatives boom, projecting an annualised growth in assets to the tune of 15.6% and 11.4% respectively for the same between 2020 and 2025.

Takeaway:

The rising allure of unlisted assets underscores investors’ growing appetite for the asset class, spanning private equity, private credit, hedge funds, real estate, infrastructure and commodities, as they seem to be willing to forgo liquidity for higher returns in an environment of ultra-accommodative monetary policy.

End Notes

Source: https://www.ft.com/content/97bb96b5-87c7-4734-a4dc-c72d33e297ac