As private market revenues climb toward $432.2 billion, investors accelerate moves into private equity and real estate

Core Insights - Institutional and individual investors are increasingly allocating capital to alternative investments such as private equity and real estate for higher long-term returns, diversification, and inflation hedging [1] Group 1: Market Trends - Private market revenues are projected to reach $432.2 billion by 2030, representing over half of the global asset management industry's revenues [2] - Regulatory reforms and new fund structures, including semi-liquid funds, are facilitating broader participation in private markets [2] - U.S. legislation now permits alternative investments within 401(k) retirement plans, enhancing accessibility for individual investors [2] Group 2: Investor Sentiment - 72% of Gen Z and millennial investors believe achieving above-average returns solely through traditional stocks and bonds is no longer feasible [3] - 17% of surveyed investors currently allocate their portfolios to alternatives, with 93% planning to increase this allocation in the coming years [3] - 92% of financial advisors incorporate alternative investments in client portfolios, with 91% intending to increase allocations over the next two years [3] Group 3: Barriers and Opportunities - Historically, access to private equity markets was restricted to institutional investors and high-net-worth individuals due to regulatory hurdles and high minimum investments [4] - Individual investors hold about 50% of the $275 trillion to $295 trillion in global assets under management, but only 16% of AUM in alternative investment funds [5] - Fewer than 15% of companies with revenue over $100 million are publicly held, limiting public investors' exposure to the broader economy, which drives interest in alternative investments [5]