Key Takeaways
- • Private market assets under management reached $11.8 trillion in 2023, more than tripling over the last decade, according to the World Economic Forum article citing Preqin projections.
- • Preqin analysts forecast private market AUM will surpass $18.3 trillion by 2027.
- • A WEF Investor Survey conducted in September 2023 found 88% of respondents plan new private market allocations over the next 12 months, up six percentage points year over year.
- • Buyouts remain the most held strategy at 83% of respondents, a 16-point rise from 2022, while private infrastructure ownership rose from 15% to almost a quarter and secondaries ownership rose about 10 points to roughly 42%.
- • Sentiment on the global economy is weak, with 46% of respondents describing a "bad feeling" and only 16% optimistic.
Summary
Private markets, defined as equity or debt not traded on public exchanges, are broadening beyond pension funds, endowments and the ultra-wealthy to include individual investors. The World Economic Forum article attributes the shift to regulatory and technological change, citing a recent revamp of the European Long-Term Investment Fund framework that could open private markets to everyday investors with some caveats, and digital platforms such as Berlin-based Moonfare, which has enabled more than 3,800 people to access private equity, venture capital and secondaries.
AUM grew from roughly one-third of current levels over the last decade to $11.8 trillion in 2023, and Preqin analysts project more than $18.3 trillion by 2027. The article notes that private assets carry relative illiquidity and long lock-up periods, along with potentially higher returns than public equities.
The WEF's third annual Investor Survey, fielded in September 2023, found diversification to be a central priority: 46% of respondents cited it as a high agenda item amid rising rates and inflation. Roughly 26% of respondents had allocated 21% to 50% of their portfolios to private assets, and about 35% held 11% to 20%, levels the article describes as comparable to pension funds, endowments and foundations.
Traditional strategies remain dominant. Buyouts, venture capital and growth equity are favored for diversification and access to established managers. Income-oriented strategies gained ground, with private infrastructure ownership rising from 15% last year to almost 25% in 2023, and private credit gaining interest in a high-rate environment. Secondaries, which involve buying existing stakes in portfolio companies usually at a discount, were held by about 42% of respondents, up 10 points, though the article notes lower return potential than primary investments.
Despite strong allocation intentions, the survey shows pessimism about the macro backdrop: 46% reported a "bad feeling" about economic conditions and 16% were optimistic, though this was an improvement from the prior year. Half of respondents expected the current conditions to persist for one to two years, while 28% anticipated a downturn of six to 12 months.
The white paper was developed by the WEF Future of Capital Markets initiative with Accenture and chaired by Lazard, with contributions from Apollo, AXA, Motive Partners, BMO Financial Group, Carta, Moonfare, Broadridge, BNY Mellon, Deutsche Bank, Edward Jones, Grayscale Investments, J.P. Morgan, Julius Baer, the New York Stock Exchange, Partners Group and Robinhood.
AUM grew from roughly one-third of current levels over the last decade to $11.8 trillion in 2023, and Preqin analysts project more than $18.3 trillion by 2027. The article notes that private assets carry relative illiquidity and long lock-up periods, along with potentially higher returns than public equities.
The WEF's third annual Investor Survey, fielded in September 2023, found diversification to be a central priority: 46% of respondents cited it as a high agenda item amid rising rates and inflation. Roughly 26% of respondents had allocated 21% to 50% of their portfolios to private assets, and about 35% held 11% to 20%, levels the article describes as comparable to pension funds, endowments and foundations.
Traditional strategies remain dominant. Buyouts, venture capital and growth equity are favored for diversification and access to established managers. Income-oriented strategies gained ground, with private infrastructure ownership rising from 15% last year to almost 25% in 2023, and private credit gaining interest in a high-rate environment. Secondaries, which involve buying existing stakes in portfolio companies usually at a discount, were held by about 42% of respondents, up 10 points, though the article notes lower return potential than primary investments.
Despite strong allocation intentions, the survey shows pessimism about the macro backdrop: 46% reported a "bad feeling" about economic conditions and 16% were optimistic, though this was an improvement from the prior year. Half of respondents expected the current conditions to persist for one to two years, while 28% anticipated a downturn of six to 12 months.
The white paper was developed by the WEF Future of Capital Markets initiative with Accenture and chaired by Lazard, with contributions from Apollo, AXA, Motive Partners, BMO Financial Group, Carta, Moonfare, Broadridge, BNY Mellon, Deutsche Bank, Edward Jones, Grayscale Investments, J.P. Morgan, Julius Baer, the New York Stock Exchange, Partners Group and Robinhood.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.