Global private capital assets under management (AUM) are projected to surpass $34tn by 2031, according to an annual five-year outlook published by Preqin, a subsidiary of BlackRock.
The report, titled Private Markets in 2031, indicates that sector fundraising is poised for renewed expansion.
This trajectory is expected to be supported by improving cash distributions, adjusting 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. Growth equity and secondary transactions are projected to expand faster than traditional buyout funds.
Private credit assets are expected to top $5tn as direct lending branches beyond standard corporate loans into asset-based finance.
Preqin projects evergreen structures to be the fastest-growing vehicle format, adding that widening return gaps will place greater emphasis on credit quality and risk mitigation.
Venture capital assets are modelled to hit $3.79tn by 2031 under Preqin’s base scenario. Artificial intelligence is expected to lower start-up establishment barriers and expand application opportunities, though alternative scenarios show 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 2031.
Geographically, North America will remain the largest market, with assets projected to exceed $23tn by 2031.European assets are forecast to surpass $7tn, while the Asia-Pacific region is anticipated to reach $3tn.
Preqin Private Markets Research global head Cameron Joyce said: “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. At the same time, transformative themes such as AI are blurring traditional asset class boundaries, prompting investors to take a more holistic view of portfolio construction across public and private markets.
“Investors that leverage better data, deeper insights and a whole-portfolio view will be better equipped to identify opportunities and achieve superior investment outcomes.”
“Private markets assets forecast to exceed $34tn by 2031, says Preqin” was originally created and published by Private Banker International, a GlobalData owned brand.