Private wealth should continue to grow in the coming years, according to a report by Citi Research. The total industry opportunity for the sector is as high as $70 trillion by 2033. Conditions look positive for an increase in wealth allocations to private assets, positioning asset managers to benefit from faster growth.
There is a convergence of public and private markets, which offers unique and valuable methods of diversifying for portfolios. Traditional managers are offering investment in private markets by buying alternative managers to offer such services to their institutional and retail clients, the report says. Manager partnerships are increasing the prevalence of hybrid products. Investors are increasingly moving away from private and public allocations and instead looking at equity and credit allocations that cross public and private markets.
Large opportunity is on the horizon, as the acceleration of assets under management for private investors is expected
