Private markets assets under management in the Asia-Pacific region should grow at an annualized double-digit pace over the next five years, even if the nearer-term outlook remains uncertain, according to Preqin, the London-based alternatives research house.
That mix of confidence and caution runs through Preqin's June 14 report, "Alternatives in Asia-Pacific 2022."
The overriding outlook is one of optimism.
Preqin CEO Christoph Knaack, in a foreword to the 55-page report, predicted the Asia-Pacific region's "private capital AUM, excluding China RMB funds, will grow at an annual rate of 15% through 2026, reaching $2.2 trillion."
"The industry goes from strength to strength, and we foresee a bright future," he said.
Still, an increasingly uncertain outlook this year — marked by spiking inflationary pressures, increasingly aggressive U.S. rate hikes and heightened geopolitical tensions — leaves room for less spectacular outcomes in the near term.
"Our predictions are contingent on the macro environment remaining relatively benign," noted RJ Joshua and Cameron Joyce, vice president, research insights and senior vice president, deputy head of research insights, respectively, at Preqin's London headquarters, in the report.
"The prospect of inflation and rising rates present formidable obstacles to the continued growth of alternatives AUM," the two wrote.
At the end of the day, "it depends on how things play out," Mr. Joyce said in an interview.