Strategies Driving Future Growth
Looking ahead to 2022
Start 2022 by checking professional resolutions off your list
Better Solutions Throughout 2021
Christoph Knaack is Preqin’s CEO Christoph Knaack was formerly Preqin’s Chief Strategy & Product Officer. Preqin’s founder and long-time CEO, Mark O’Hare, will remain actively involved in our strategy as a key member of Preqin’s board.
I am truly honored to lead Preqin through its next phase of growth. Preqin is an incredible business and Mark’s vision in building it has truly changed the alternative assets industry. Private markets are evolving, and so is Preqin, and I am very excited about the opportunities ahead of us.
7.0%
more investor profiles
12.2%
more fund manager profiles
20%
more fund profiles
The Preqin Pro platform now features 7% more LP profiles and 12% more GP profiles compared with the start of 2021. Over the course of 2021 we have rapidly increased our data coverage across alternatives, giving you greater insight into our growing market
Increased support across the private market investment lifecycle Preqin merged with Colmore, a leading private markets technology, services, and administration business, to deepen our support from fundraising to due diligence and portfolio monitoring. The merger also enables us to enhance our market-leading benchmarks with timely, transparent data. Read about the acquisition here
Solutions to understand the risk, impact, and opportunity in ESG Investments ESG is no longer a nice-to-have, but a must-have for any investment professional. To help you quantify ESG risk, impact, and opportunity, we launched the private markets’ only solution that enables a 360-degree view of ESG factors across LPs and GPs, down to the portfolio and private-company level. Learn about Preqin ESG Solutions
Powerful data for streamlined deal activities With Company Intelligence, investment teams and M&A professionals can streamline top-of-funnel deal activities with detailed profiles and searches of sponsor-backed companies. Find businesses that fit your strategy, discover if they deliver the returns you seek, and build confidence on your assumptions with fully auditable data and transparent methodologies. Learn about Company Intelligence
New Year’s Resolutions
The Alternative Industry Landscape
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AUM ($tn)
Alternative Assets under Management and Forecast, 2010 - 2026*
Short remarks from incoming Preqin CEO
Industry forecast 2022 – 2026
Our increased data coverage and solutions enhancements
Performance across asset classes
Happy New Year!
From our Preqin family to yours, we wish you a very happy holiday season and new year. As we reflect on the year and look toward the future, we all hope for a more peaceful 2022. During 2021, the private markets played a role in supporting and strengthening the communities still suffering from the pandemic, and we expect our industry to continue to play its part in the year ahead. Here’s a snapshot of our year in alternatives, and some predictions for the year ahead.
The post-Global Financial Crisis economic cycle was a long one, lasting until the onset of the pandemic in early 2020. As the cycle played out, it proved more difficult to generate returns from public and traditional fixed-income markets, often viewed as expensive by investors. As a result, we saw an uptick in allocations to alternative asset classes, which, while less liquid, proved able to deliver superior returns. Total assets under management (AUM) in alternatives have grown exponentially amid this demand. From 2015 to the end of 2021, AUM grew at a CAGR of 10.7%. As of the end of 2015, AUM stood at $7.23tn, rising to $13.32tn by the end of 2021, according to Preqin forecasts. Fundraising markets have supported this solid growth in recent years. According to Preqin data, more than $1tn has been raised across all fund types within private capital markets in each of the past four years. By the end of the year, 2021 will have delivered in excess of $1tn in fundraising, likely surpassing 2019’s record total ($1.23tn).
Which strategies will drive future growth in the space? Preqin forecasts that private debt will deliver the strongest growth of any alternative asset class between 2021 and 2026 (17.4% CAGR), followed by infrastructure (16.6%) and private equity (15.9%). By 2026, private equity should significantly extend its lead over hedge funds as the largest asset class, growing to $11.12tn in AUM, more than double the size of the hedge fund industry ($5.44tn forecast, 4.2% CAGR). Private equity’s share of total private capital AUM should end 2021 just below 60%, and end 2026 at 63%. In contrast, if pre-pandemic patterns in hedge fund AUM repeat themselves, we could see the return of net outflows in the space, despite solid performance over the past two years.
While we don’t have a crystal ball, we’re expecting 2022 to be another year of growth in alternatives. Sign up for our Preqin newsletter to get exclusive data and content – you’ll also be among the first to know when we’ve launched our Alternatives in 2022 report which anticipates what’s ahead for our industry. Sign up for your weekly alternatives update here
Be the most informed in the room about the future of alternatives
Should the macroeconomic backdrop remain relatively benign, as it is at present, then the outlook for alternatives is very positive. In spite of the inflationary pressure, which could prove a short-term issue, still-low interest rates will support an increase in allocations to alternatives and the successful deployment of this capital. Discover more about where growth is expected across the alternatives landscape in our upcoming 2022 Global Alternative Reports.
Be the most informed in the room about the future of alternatives While we don’t have a crystal ball, we’re expecting 2022 to be another year of growth in alternatives. Sign up for our Preqin newsletter to get exclusive data and content – you’ll also be among the first to know when we’ve launched our Alternatives in 2022 report which anticipates what’s ahead for our industry. Sign up for your weekly alternatives update here
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Throughout 2021, we enhanced our solutions to better serve you.
Expand your professional network
Are you a senior industry expert and looking to share your perspective via thought leadership or events in 2022? Indicate your interest and prior experience with Preqin’s Expert Voices program, and we’ll reach out with opportunities that match your experience. Kindly email: expertvoices@preqin.com Preqin Expert Voices
From our Preqin family to yours, we wish you a very happy holiday season and new year. As we reflect on the year and look toward the future, we all hope for a more peaceful 2022. During 2021, the private markets played a role in supporting and strengthening the communities still suffering from the pandemic, and we expect our industry to continue to play its part in the year ahead. Here’s a snapshot of our year in alternatives.
The post-Global Financial Crisis economic cycle was a long one, lasting until the onset of the pandemic in early 2020. As the cycle played out, it proved more difficult to generate returns from public and traditional fixed-income markets, often viewed as expensive by investors. As a result, we saw an uptick in allocations to alternative asset classes, which, while less liquid, proved able to deliver superior returns. Total assets under management (AUM) in alternatives have grown exponentially amid this demand. From 2015 to the end of 2021, AUM grew at a CAGR of 10.7%. As of the end of 2015, AUM stood at $7.23tn, rising to $13.32tn by the end of 2021, according to Preqin forecasts. Fundraising markets have supported this solid growth in recent years. According to Preqin data, more than $1tn has been raised across all fund types within private capital markets in each of the past four years. By the end of the year, 2021 will have delivered in excess of $1tn in fundraising, likely surpassing 2019’s record total ($1.23tn). Which strategies will drive future growth in the space? Preqin forecasts that private debt will deliver the strongest growth of any alternative asset class between 2021 and 2026 (17.4% CAGR), followed by infrastructure (16.6%) and private equity (15.9%). By 2026, private equity should significantly extend its lead over hedge funds as the largest asset class, growing to $11.12tn in AUM, more than double the size of the hedge fund industry ($5.44tn forecast, 4.2% CAGR). Private equity’s share of total private capital AUM should end 2021 just below 60%, and end 2026 at 63%. In contrast, if pre-pandemic patterns in hedge fund AUM repeat themselves, we could see the return of net outflows in the space, despite solid performance over the past two years. Throughout the COVID-19 pandemic, performance across some alternative asset classes could be described as spectacular. In the one year to March 2021, the most recent period for which performance data is available, private equity horizon IRRs reached 44.8%, according to Preqin data. Venture capital returns surpassed even this total, hitting 56.4%. Other asset classes have fared less well, but remain attractive to allocators, nonetheless. Should the macroeconomic backdrop remain relatively benign, as it is at present, then the outlook for alternatives is very positive. In spite of the inflationary pressure, which could prove a short-term issue, still-low interest rates will support an increase in allocations to alternatives and the successful deployment of this capital.
The Preqin Pro platform now features XX% more LP profiles and XX% more GP profiles compared with the start of 2021. Over the course of 2021 we have rapidly increased our data coverage across alternatives, giving you greater insight into our growing market
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New Year’s Resolutions Start 2022 by checking professional resolutions off your list
The post-Global Financial Crisis economic cycle was a long one, lasting until the onset of the pandemic in early 2020. As this cycle played out, it proved more difficult to generate returns from public and traditional fixed-income markets, often viewed as expensive by investors. As a result, we saw an uptick in allocations to alternative asset classes, which, while less liquid, proved able to deliver superior returns. Total assets under management (AUM) in alternatives have grown exponentially amid this demand. From 2015 to the end of 2021, AUM grew at a CAGR of 10.7%. As of the end of 2015, AUM stood at $7.23tn, rising to $13.32tn by the end of 2021, according to Preqin forecasts. Fundraising markets have supported this solid growth in recent years. According to Preqin data, more than $1tn has been raised across all fund types within private capital markets in each of the past four years. By the end of the year, 2021 will have delivered in excess of $1tn in fundraising, likely surpassing 2019’s record total ($1.23tn). Should the macroeconomic backdrop remain relatively benign, as it is at present, then the outlook for alternatives is very positive. In spite of the inflationary pressure, which could prove a short-term issue, still-low interest rates will support an increase in allocations to alternatives and the successful deployment of this capital.
Increased support across the private market investment lifecycle
Preqin merged with Colmore, a leading private markets technology, services, and administration business, to deepen our support from fundraising to due diligence and portfolio monitoring. The merger also enables us to enhance our market-leading benchmarks with timely, transparent data. Read about the acquisition here
Solutions to understand the risk, impact, and opportunity in ESG Investments
ESG is no longer a nice-to-have, but a must-have for any investment professional. To help you quantify ESG risk, impact, and opportunity, we launched the private markets’ only solution that enables a 360-degree view of ESG factors across LPs and GPs, down to the portfolio and private-company level. Learn about Preqin ESG Solutions
Powerful data for streamlined deal activities
With Company Intelligence, investment teams and M&A professionals can streamline top-of-funnel deal activities with detailed profiles and searches of sponsor-backed companies. Find businesses that fit your strategy, discover if they deliver the returns you seek, and build confidence on your assumptions with fully auditable data and transparent methodologies. Learn about Company Intelligence
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