You read that right…..gulp!
That is an eye-watering number, but Bain & Company suggests it in its recent analysis, “Avoiding Wipeout: How to Ride the Wave of Private Markets.”
They say:
Wealth and asset managers are now favoring private markets because the business models that have dominated asset management for years have nearly run their course,” said Markus Habbel, global head of Bain’s Wealth & Asset Management practice. Private assets constitute a much larger market than public assets and offer potentially higher yields, diversification, and in cases such as real estate—a hedge against inflation. Our research shows there are five key areas firms must focus on if they wish to adapt.
They go on to say:
Similarly, rising contributions from retail investors will cause the retail AUM share to rise from 16% in 2022 to 22% in 2032.
Individuals are drawn to the alternative asset market by the prospect of diversification and higher returns and are therefore willing to tolerate lower liquidity, said Habbel. In response to this demand, leading companies have launched innovative offerings such as intermittent liquidity products for retail investors.
These market drivers are why we are building out our alternative investment platform.
What do you think? Is the market going to be this big by 2032?
See the original report here.
