Key Takeaways
- • Preqin, the private markets data provider owned by BlackRock, forecasts private markets assets under management will exceed $34 trillion by 2031, and says the total could be higher if private credit expands further into asset-backed strategies.
- • Private equity remains the largest asset class, with AuM forecast to reach $11.6 trillion by 2031, with growth equity and secondaries expected to outpace traditional buyout.
- • Private credit AuM is forecast to pass $5 trillion, with evergreen structures expected to be the fastest-growing segment.
- • Preqin's base case puts venture capital AuM at $3.79 trillion and infrastructure AuM at $2.74 trillion, the latter growing at an annualised 9.8 per cent.
- • North America is expected to remain the largest regional market with more than $23 trillion in AuM, followed by Europe above $7 trillion and Asia-Pacific near $3 trillion.
Summary
Preqin, the private markets data provider owned by BlackRock, forecasts that private markets assets under management will exceed $34 trillion by 2031, according to Wealth Briefing. The company says the total could rise further if private credit extends further into asset-backed strategies. The projection is drawn from Private Markets in 2031, Preqin's annual five-year forecast covering fundraising, performance and AuM across private equity, private credit, venture capital and infrastructure. Preqin expects fundraising to return to growth over the period, supported by improving liquidity, shifting investor allocations and a wider set of investment opportunities.
Private equity is expected to remain the largest asset class, with AuM forecast to reach $11.6 trillion by 2031, driven by better performance and stronger capital returns. Preqin said in a statement that growth equity and secondaries are expected to outpace traditional buyout strategies.
Private credit AuM is forecast to pass $5 trillion. Preqin argues this figure understates the opportunity because lending is moving beyond corporate loans into asset-based finance and other strategies that fund-based estimates do not fully capture. Evergreen structures are expected to be the fastest-growing segment. The article notes that these vehicles offer a route to private assets for individual clients, while figures cited in the wealth industry caution about liquidity constraints when underlying assets are relatively illiquid and markets become stressed.
In venture capital, Preqin's base case puts AuM at $3.79 trillion by 2031, with AI expected to lower the cost of forming companies and open opportunities in the application layer. Alternative scenarios model how faster or slower AI adoption would affect valuations, fundraising and exits. Infrastructure AuM is forecast to reach $2.74 trillion, annualised growth of 9.8 per cent, driven by demand for power and energy security, digital connectivity and supply chain resilience.
By region, North America is expected to remain the largest market with more than $23 trillion in AuM, Europe is forecast to exceed $7 trillion, and Asia-Pacific is expected to approach $3 trillion.
Private equity is expected to remain the largest asset class, with AuM forecast to reach $11.6 trillion by 2031, driven by better performance and stronger capital returns. Preqin said in a statement that growth equity and secondaries are expected to outpace traditional buyout strategies.
Private credit AuM is forecast to pass $5 trillion. Preqin argues this figure understates the opportunity because lending is moving beyond corporate loans into asset-based finance and other strategies that fund-based estimates do not fully capture. Evergreen structures are expected to be the fastest-growing segment. The article notes that these vehicles offer a route to private assets for individual clients, while figures cited in the wealth industry caution about liquidity constraints when underlying assets are relatively illiquid and markets become stressed.
In venture capital, Preqin's base case puts AuM at $3.79 trillion by 2031, with AI expected to lower the cost of forming companies and open opportunities in the application layer. Alternative scenarios model how faster or slower AI adoption would affect valuations, fundraising and exits. Infrastructure AuM is forecast to reach $2.74 trillion, annualised growth of 9.8 per cent, driven by demand for power and energy security, digital connectivity and supply chain resilience.
By region, North America is expected to remain the largest market with more than $23 trillion in AuM, Europe is forecast to exceed $7 trillion, and Asia-Pacific is expected to approach $3 trillion.
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