Expansion Theory
A new report by PitchBook forecasts that private markets could grow to $20 trillion by 2028, potentially even reaching $23.7 billion in a good case scenario. Private markets already control $14.7 trillion in assets, having grown at an annualized rate of 12.8% between 2012 and 2022. If the forecast proves accurate investors might find they’re going to need an even bigger boat to go fishing, as they increase their fund allocations, with private equity, private debt and real assets all expected to expand. VC and real estate less so. Private equity is forecast to grow from $5.3 trillion to $8 trillion, with buyouts leading the fundraising charge. Secondaries are also expected to play a key role in this expansion theory, growing from $462 billion to more than $700 billion. The private markets universe continues to boom it seems, but much will depend on the prevailing macro environment. Could we witness further stellar performance? Grab your telescope and watch how things unfold!