Alternative Assets Industry Hits USD6 Trillion

By Editorial 27 January, 2014

The global alternative assets industry is now valued at over USD6 trillion, according to the latest estimates from British research and consultancy firm Preqin.

As of June 2013, total private equity assets under management (including private real estate and infrastructure funds) stood at USD3.5 trillion, up from the USD3.2 trillion recorded in June 2012, Preqin's 2014 Preqin Glabal Private Equity Report says.

2013 saw the largest amount of capital raised since the global financial crisis, with private equity funds raising USD454bn, but only seven percent was raised from first-time fund managers, the lowest proportion ever recorded.

The hedge fund industry saw the highest growth in assets over the last year compared to other alternative assets, from USD2.30 trillion to over USD2.66 trillion, as a result of strong investment gains and new asset flows, according to Preqin's 2014 Global Hedge Fund Report.

Hedge funds posted returns of 11.08 percent over 2013, but despite lagging the S&P 500 Index, 84 percent of investors stated that returns had met or exceeded expectations, the highest level recorded by Preqin.

Assets in the real estate industry stood at USD657bn as of June 2013, up from USD576bn in June 2012, following the strongest fundraising year for the industry since the global financial crisis, Preqin said in its 2014 report for the global real estate industry.

Real estate was the best performing asset class in public pension funds' portfolios over the three years to June 2013, posting average returns of 13.7 percent and surpassing the average 13.6 percent returns on listed equities.

Assets in the global infrastucture industry reached a record high of USD244bn as of June 2013, up from USD210bn a year before, Preqin found.

Tags: Investment | Private Equity | Pensions | Real-estate Investment | Real-estate | Investment Funds | Hedge Funds | Equity Investment | Alternative Investment | Expats | Investment | Invest | Investment |


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