Optimism Grows for Alternative Assets in 2025 – Preqin Global Reports 

KUALA LUMPUR, Dec 11 (Bernama) -- Preqin, the global leader in alternative assets data, tools, and insights, has published its Preqin Global Reports 2025, offering in-depth analysis on six major alternative asset classes, namely private equity, venture capital, private debt, hedge funds, real estate, and infrastructure.

All the Global Reports delve into forecasts for fundraising, assets under management (AUM), deals, performance, and investor sentiment, based on a recent Preqin survey of 255 investors conducted in November 2024.

The reports combine both qualitative and quantitative analysis, providing in-depth insights into key trends and opportunities in the alternative assets space.

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Preqin Senior Vice President, Global Head of Research Insights, Cameron Joyce said the macroeconomic backdrop has proved more resilient than anticipated, with limited signs of financial stress witnessed across financial markets.

“As policy rates begin to ease, market sentiment has become increasingly optimistic regarding the prospects for private capital. Notably, we anticipate a revitalised dealmaking environment in 2025, helping to bolster overall activity,” he said in a statement.

The reports highlight growing optimism in several sectors, with private equity fundraising seeing significant growth in 2024, reaching US$482 billion by the third quarter (Q3) of this year, with non-institutional investors (including family offices and wealth managers) showing increased interest, alongside traditional investors like insurance companies and asset managers. (US$1=RM4.42)

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In venture capital, AUM growth slowed in 2024, declining slightly to US$3.1 trillion by the first quarter (Q1) of 2024, with expectations for exits to rise in 2025, despite a drop in exit values in 2024 compared to the previous year.

Private debt fundraising saw a substantial recovery after a slow Q1 2024, but investors adopted a more defensive approach in response to market challenges, leading to shifts in the balance of power between investors and fund managers.

Meanwhile, hedge funds have performed well, returning 10 per cent globally, with a notable US$25.5 billion in inflows in Q3. Despite a generally poor decade for hedge fund performance, 2024 marked a strong rebound.

Global real estate transactions show early signs of recovery in 2024, particularly in North America, Europe, and Asia Pacific, while infrastructure fundraising has slowed, and dry powder as a share of AUM has fallen to a record low of 24 per cent.

-- BERNAMA