The projection comes from Private Markets in 2031, Preqin’s annual five-year forecast of fundraising, performance and AuM across private equity, private credit, venture capital and infrastructure. Preqin expects fundraising to return to growth over the period, helped by improving liquidity, shifting investor allocations and a wider set of investment opportunities.

Private equity remains the largest asset class, with AuM forecast to reach $11.6 trillion by 2031 on the back of better performance and stronger capital returns. Growth equity and secondaries are expected to outpace traditional buyout, the organisation said in a statement this week.

Private credit AuM is forecast to pass $5 trillion. Preqin says that figure understates the opportunity, because lending is moving beyond corporate loans into asset-based finance and other strategies that fund-based estimates do not fully capture. Evergreen structures, which have become a feature in recent years, are expected to be the fastest-growing segment.

The evergreen structure provides a route for offering private assets to individual clients, although Family Wealth Report has heard figures in the wealth industry caution about the ability to offer liquidity when underlying assets can be relatively illiquid and markets become stressed. (See more here.)

In venture capital, Preqin’s base case puts AuM at $3.79 trillion by 2031. It expects AI to lower the cost of forming companies and to open opportunities in the application layer. Alternative scenarios model how faster or slower AI adoption would affect valuations, fundraising and exits.

Infrastructure AuM is forecast to reach $2.74 trillion, annualised growth of 9.8 per cent. Demand for power and energy security, digital connectivity and supply chain resilience are expected to drive it.

By region, North America is expected to remain the largest market with more than $23 trillion in AuM. Europe is forecast to exceed $7 trillion and Asia-Pacific to approach $3 trillion.