Alternative assets under management in Asia-Pacific are set to reach almost $5 trillion by 2025, the largest growth forecast across regions, Preqin said.
The compound annual growth rate of alternatives AUM in Asia-Pacific is expected to be 25.2%, the data and analytics firm said in its "Future of Alernatives 2025" research report. AUM was $1.62 trillion in 2019.
Private equity and venture capital AUM are forecast to lead growth, with venture capital AUM expected to triple in size to $300 billion by 2025.
The global CAGR is expected to be 9.8% for the next five years.
North America, however will remain the largest alternatives region, with AUM expected to rise 30.3% to $8.6 trillion over the next five years, the data and analytics firm said. The CAGR was not available.
For Europe, alternatives AUM is expected to grow 28.1% in total over the five years to $2.83 trillion. The CAGR was not available.
"Alternatives are expected to grow in all regions, but the biggest expansion will be seen in Asia-Pacific," Dave Lowery, head of research insights, said in a news release accompanying the research. "However, the industry will also turn increasingly to emerging markets, which are expected to grow at a faster rate than the global average. The Middle East is home to some of the world's largest investors, Africa has created opportunities for foreign investors with the opening of capital markets, and Latin America has already experienced an increase in private equity transactions."
Regions outside of APAC, Europe and North America are forecast to rise at a CAGR of 11.1% to $428 billion by 2025.