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Global alternative assets to reach $15.3 trillion in 2020

Staff writer ▼ | June 30, 2015
A report just published by PwC predicts global alternative assets will increase to $15.3 trillion by 2020.
Global alternative assets
PwC   The global alternative asset management industry
In the lead up to it, the global alternative asset management industry is expected to experience a period of transformation as players calibrate their business and operations and make technology a top investment priority.

According to the report, ‘Alternative Asset Management in 2020: Fast Forward to Centre Stage’, the rapid developments in the global economic environment have pushed asset management to the forefront of social economic change. As a result, the need for sustainable long-term investment returns has propelled the alternative asset classes to centre stage.

The principal focus for many firms will shift to creating a broader asset class and product mix and accessing new distribution channels.

While some firms still strive to become more institutionalised, the leading players will work to build industrial-strength operational platforms. They will meet this challenge by revamping their business and infrastructure to be more agile, durable and scalable, with a high degree of efficiency and operating leverage.

Assets under management in South America, Asia, Africa and the Middle East (SGlobal alternative assetsME) are set to grow faster than the developed world.

According to PwC, this growth will be exemplified by the growth of sovereign assets and the projected emergence of new Sovereign Investors, the vast majority of which will originate from SGlobal alternative assetsME. The largest increases in allocations will likely be in private equity, real estate and infrastructure.