As global investors seek investment opportunities outside North America and Europe, they are turning their attention to the APAC region, which has thus far avoided the worst of the inflationary impacts seen elsewhere. We forecast that private capital assets under management (AUM) in APAC, excluding RMB-denominated funds, will represent 12.7% of the global market at the end of 2022, reaching $2.25tn by 2026, at a CAGR of 15.0%. Private equity and venture capital accounted for 73.6% of the total APAC private capital market in 2021, and we expect it to reach 83.0% in 2026.
APAC private capital markets go from strength to strength, as investors align themselves with the priorities of increasingly affluent and tech-savvy middle classes, as well as the potential to diversify investment exposure in a global market. Headwinds loom, however, in the form of rising geopolitical tensions, as well as rising inflation and interest rates in the US and Europe.
Preqin 2022: Alternatives in Asia-Pacific for our expert analysis of the trends in the alternatives market in the APAC region. The report also features exclusive commentary from industry experts across the region, who share their expertise on developments including decarbonization, digitalization and the growth of smart technologies as they affect the Asia-Pacific market.
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