According to a recent report by Bain and Company, private market assets under management (AUM) are expected to expand at a rate that is more than double that of public assets, with an estimated value of $60 to $65 trillion by 2032. This accelerated expansion, which is being driven by a compound annual growth rate (CAGR) of 9% to 10%, will constitute 30% of all global AUM. The increase in private assets is primarily due to the increased demand from institutional investors, who are anticipated to increase their allocations to alternative assets by a 10% CAGR over the next decade.
Retail investor contributions will also experience substantial growth, with their percentage of AUM increasing from 16% in 2022 to 22% by 2032. By the same year, it is anticipated that private equity and venture capital will continue to be the largest asset categories, resulting in a projected doubling of fee revenue to $2 trillion. Bain and Company recommends that asset managers concentrate on five critical areas in order to remain competitive: defining strategic objectives, enhancing merger and acquisition integration skills, adapting sales and marketing strategies, educating investors, and developing new operational capabilities. Bain and Company, a global consulting firm, is dedicated to assisting businesses in navigating and capitalizing on substantial market changes.
