Alternative assets could grow to between $13.6 trillion and $15.3 trillion by 2020 from $7.9 trillion in 2013, a PricewaterhouseCoopers report released Monday predicts.
Private equity is poised to increase to between $6.5 trillion and $7.4 trillion by 2020 from $3.6 trillion in 2013.
Attainment of the high end of the range for alternative investments is based on capital markets performance “driven by accommodative monetary policies and stable GDP growth,” the report states. However, interest rate increases in the U.S. and Europe, and a capital markets correction would result in the lower, base case of $13.6 trillion, the report said.
International institutional investors are expected to increase their allocations to alternative investments, following the trend led by U.S. pension funds, endowments, foundations and sovereign wealth funds, PwC's report states. The increase is also expected to be driven by greater investment in infrastructure and real estate.