Key Takeaways
- • Global private capital AUM is projected to surpass $34tn by 2031, according to Preqin's annual five-year outlook, "Private Markets in 2031."
- • Private equity is forecast to reach $11.6tn in assets by 2031, with growth equity and secondaries expected to expand faster than traditional buyout funds.
- • Private credit assets are expected to top $5tn as direct lending extends into asset-based finance, while evergreen structures are projected to be the fastest-growing vehicle format.
- • Venture capital assets are modelled at $3.79tn by 2031 under Preqin's base scenario, with AI cited as a factor that could lower start-up formation barriers.
- • Infrastructure is projected to grow at a 9.8% annualised rate to $2.74tn by 2031.
Summary
Global private capital assets under management are projected to surpass $34tn by 2031, according to an annual five-year outlook published by Preqin, a BlackRock subsidiary. The report, titled Private Markets in 2031, indicates that fundraising across the sector is poised for renewed expansion. Growth is expected to be supported by improving cash distributions, shifting investor allocations, and wider deployment avenues, with additional upside as private credit broadens into asset-backed finance.
Private equity is forecast to reach $11.6tn in assets by 2031, assisted by rebounding performance and capital distributions. Preqin expects growth equity and secondary transactions to expand faster than traditional buyout funds. Private credit assets are expected to exceed $5tn as direct lending moves beyond standard corporate loans into asset-based finance. Preqin also projects evergreen structures to be the fastest-growing vehicle format, and notes that widening return gaps will place greater emphasis on credit quality and risk mitigation.
Venture capital assets are modelled to reach $3.79tn by 2031 under Preqin's base scenario. The firm says artificial intelligence is expected to lower start-up establishment barriers and expand application opportunities, though alternative scenarios show that varying adoption rates could alter valuations, fundraising, and exit activity. Infrastructure is projected to expand at an annualised rate of 9.8% to reach $2.74tn.
By region, North America will remain the largest market with assets projected to exceed $23tn, Europe is forecast to surpass $7tn, and Asia-Pacific is anticipated to reach $3tn.
Cameron Joyce, global head of Preqin Private Markets Research, said that 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. He added that AI and similar themes are blurring traditional asset class boundaries, prompting investors to take a more holistic view of portfolio construction across public and private markets.
Private equity is forecast to reach $11.6tn in assets by 2031, assisted by rebounding performance and capital distributions. Preqin expects growth equity and secondary transactions to expand faster than traditional buyout funds. Private credit assets are expected to exceed $5tn as direct lending moves beyond standard corporate loans into asset-based finance. Preqin also projects evergreen structures to be the fastest-growing vehicle format, and notes that widening return gaps will place greater emphasis on credit quality and risk mitigation.
Venture capital assets are modelled to reach $3.79tn by 2031 under Preqin's base scenario. The firm says artificial intelligence is expected to lower start-up establishment barriers and expand application opportunities, though alternative scenarios show that varying adoption rates could alter valuations, fundraising, and exit activity. Infrastructure is projected to expand at an annualised rate of 9.8% to reach $2.74tn.
By region, North America will remain the largest market with assets projected to exceed $23tn, Europe is forecast to surpass $7tn, and Asia-Pacific is anticipated to reach $3tn.
Cameron Joyce, global head of Preqin Private Markets Research, said that 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. He added that AI and similar themes are blurring traditional asset class boundaries, prompting investors to take a more holistic view of portfolio construction across public and private markets.
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