Alternative Assets in Asia Pacific May Near $5 Trillion in 2025

Alternative investments managed in the Asia Pacific region may reach almost $5 trillion by 2025, as strong investor appetite in the fast-growing area drives the biggest increase in the world, according to Preqin Ltd.

That would come after assets under management for private capital based in the region expanded more than eightfold in the past decade to about $1.6 trillion in September last year, the research firm said in a report.

Asia “is home to a very diverse range of economies at various stages of development, market sophistication, and innovation – all are in need of public and private capital to the tune of ever-larger sums,” said Mark O’Hare, chief executive officer at Preqin.

China is the main driver, especially in private equity. The Greater China area’s private equity and venture capital industry AUM accounts for 74% of capital targeting the wider region, according to Preqin.

In private debt, North America and Europe together account for 91% of the global market, but the Asia Pacific region is growing fast. Assets under management in the area have almost tripled in the past five years to $59 billion as of September 2020, despite the pandemic slowing down fundraising last year, the firm said.

©2021 Bloomberg L.P.

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