Global private equity assets under management including venture capital is expected to rise to a base case forecast of $5.8 trillion, a bear case scenario of $5.3 trillion and a bull case of $6 trillion by 2025, Deloitte projects.
Deloitte's base case includes $3.9 trillion in unrealized value and $1.9 trillion in dry powder. It's baseline projection has a 55% likelihood. Global private equity AUM had $4.5 trillion as of Dec. 31, 2019, and Deloitte projects $4.6 trillion in private equity AUM at year-end 2020.
Meanwhile, alternative investment firm Preqin predicts that global private equity AUM will reach $9.11 trillion by 2025. Private debt is expected to grow 11.4% annually to $1.46 trillion in five years. Overall, Preqin expects total global alternative investment AUM to grow to $17.16 trillion. Preqin predicts that private equity AUM will increase to $4.41 trillion by Dec. 31.