Historical fundraising for private market funds
Source: Preqin, as of June 30, 2023.
- Last year’s bear market followed by the extraordinarily narrow rally of 2023 has highlighted the importance of finding lower or uncorrelated sources of return across full market cycles.
- Institutional investors such as pension funds, university endowments and sovereign wealth funds have long turned to private markets, including private credit and private equity, in an effort to diversify portfolios and generate strong risk-adjusted returns.1
- While institutions have been diversifying outside of traditional public markets for decades, individuals have faced hurdles in accessing private markets, including high investment minimums and suitability requirements often associated with private asset funds.
- Due to investor demand for differentiated sources of income and growth, diversification has helped spur a democratization of private assets with asset managers increasingly designing investment solutions with the individual investor in mind.