- Advertisement -
- Advertisement -

Related

Hedge Fund Assets Expected to Rise by a Third by 2023

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – The alternative assets industry, which includes hedge funds, private equity, real estate and infrastructure investments in a variety of vehicles, is predicted to reach $14 trillion in assets under management by 2023 from $8.8 trillion recorded at the end of last year. Data provider Preqin also predicts private equity funds will overtake hedge funds as the largest alternative asset class even though the hedge fund industry is anticipated to grow by 31 percent in five years.

In a report called “The Future of Alternatives: The Classes of 2023,” Preqin predicts that the hedge fund industry will oversee $4.7 trillion in assets under management in five years from $3.6 trillion as of the end of last year. The capital managed by private equity funds, meanwhile, is projected to grow 58 percent from $3.1 trillion to $4.9 trillion, allowing the group to become the largest alternative asset class. Private equity funds and hedge fund vehicles collectively accounted for three-fourths of the $8.8 trillion alternative assets industry at the end of last year.

“While industry participants are predicting this share to decrease over the next five years to 69 percent, as other alternative asset classes look set for faster growth, these industries are expected to contribute the majority (56 percent, $2.9tn) of the growth in dollar terms over the next five years,” the report writes.

Source: Preqin.

Private debt and infrastructure are predicted to double their assets under management, reaching $1.4 trillion and $1.0 trillion, respectively. Real estate funds, meanwhile, are expected to grow 50 percent to $1.2 trillion. Natural resources funds are expected to reach the highest rate of growth (300 percent), yet, will remain the smallest asset class among alternatives with $800 billion in assets. Preqin’s estimates are based on average predictions from 420 fund managers and investors polled on each asset class.

“Fourteen trillion dollars may sound like an overly ambitious prediction for the alternative assets industry, but it is lower than the average growth rate we’ve seen in the past decade. There are several key factors that will drive this growth, including: the proven long-term performance of alternatives; the growing opportunities available in private debt; and the rise of emerging markets in which alternatives funds are already entrenched. If anything, we believe that $14tn is more likely to be too low than it is to be too high,” says Mark O’Hare, Preqin’s chief executive officer.

 

Picture © Gajus—shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Origo’s Johansson Returns to Sohn Conference with High-Conviction Pick

Swedish stock-picking boutique Origo Fonder is gaining fresh recognition following a strategic transformation, strong performance, and growing assets. The firm’s evolution into an “Origo...

Commodities Lift CTAs Amid Turmoil

In June 2025, the NHX CTA Index was up as losses in stocks and bonds were outweighed by profits in commodities, but briefly erupting...

Finserve Global Security Fund Boosts Quant Edge with Martin Redgård

Under lead portfolio manager Joakim Agerback, the Finserve Global Security Fund has successfully capitalized on the global surge in defense, cybersecurity, and space investments...

Visio Allocator Storms Back After Difficult March

After posting the worst monthly performance in its 15-year history with a 13.7 percent decline in March, the team behind the multi-strategy Visio Allocator...

Sissener Expands Investment and Sales Teams with Senior Hires

Just months after bringing on Mads Andreassen as Investment Manager, Norwegian fund boutique Sissener AS continues to expand its team with two key additions....

Fenja Capital Deepens Bench as Analyst Moves to Full-Time Role

After earning his Master’s degree in Economics from Aalborg University, Anders Madsen has transitioned from a part-time role to a full-time analyst position at...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.