Private asset funds are expected to become a central force in driving the global economy over the next five years, after soaring to record highs in 2025.
The value of private asset funds has surged 9.6 per cent this year to date, to a record $14.05 trillion (£10.46 trillion), a striking 77 per cent rise since 2020, according to the latest global asset monitor from financial services provider Ocorian.
This value is forecast to climb a further 70 per cent over the next five years to hit $23.9 trillion by 2030, with private equity predicted to be a key driver for growth, predicted to jump from $9.9 trillion to $17.4 trillion.
Infrastructure, private debt and real estate funds are also forecast to perform strongly, after a strong eight month performance, bringing the global value of the four sectors to $23.9 trillion by the beginning of September.
Yegor Lanovenko, global co-head of funds services at Ocorian said: “The decade ahead will be transformational for global asset management…with structural shifts across investor profiles and how private market products are distributed.”
Asian markets grow but America dominates
The robust growth of private equity global assets, up 10.8 per cent this year, was particularly driven by the performance of Asian markets.
The market reached a record $2.1 trillion, up 15.8 per cent in the first eight months of the year, making up 30 per cent of 2025’s growth, despite only accounting for only a fifth of global assets.
However, North America continued to dominate overall fund holdings, with more than 50 per cent of private equity funds held under management in the region, while 62 per cent of private debt funds also based in North America, emphasising its influence on the global market.
Vincent Calcagno, head of US growth at Ocorian said: “Mainstream fund managers expanding into private markets and big multi-decade players have a real competitive advantage in the power of their distribution channels.
“The shape of the market in 2030 is clear – a cohort of larger asset managers will become increasingly dominant in the US and globally as the line between investment options for retail and institutional investors blurs.”
Elsewhere, infrastructure grew by 10 per cent to 1.35 trillion, boosted by increased investment in both digital infrastructure and energy security across developed markets, while private debt rose by 7.7 per cent to $1.36 trillion.
Real estate lagged in growth, rising by just 3.1 per cent, yet still hit an all time high of $1.48 trillion.
Regulation fears drive third party reliance
Private equity professionals also believe capital from all major LP sources will rise, with family offices and pension funds predicted to lead the charge.
However, there are also growing fears of increased regulation as the private market continues to spread its influence, with 85 expecting more regulation whilst 88 per cent predict there will be more industry restrictions and fines over the next two years.
Growing capital and regulation woes has been credited to driving more institutional investors to outsourcing non-core functions, with nearly 50 per cent admitting to increasing their outsourcing capabilities.
Similarly, over 80 per cent expect to expand their reliance on third parties over the next two years, with investor services and fund administration responsibilities most likely to be handed over to outsourced providers.