PGIM Investments' Matt Shafer: Private markets rise resembles the ascension of EMs

Evolution over the next decade

The remarkable rise of private markets over the past decade could be set to herald a permanent transformation of investor asset allocation in the years to come.

While unlisted assets have been components within institutional strategies for some time, wealth management portfolios continue to carry modest exposure to private markets, normally in the single digits of average weightings. However, as regulations aimed at increasing private markets access continue to evolve, we could be on the cusp of an additional unprecedented surge in demand, with individual investor allocations to alternative assets estimated to jump from $4trn last year to $13trn by the end of 2032. Investment Week Private Markets Summit in pictures It is not difficult to d...