(HedgeCo.Net) Global alternative assets under management could hit $32 trillion by 2030, according to new projections from Preqinand BlackRock, signaling that private markets are moving from niche to mainstream.

The report, Private Markets in 2030, cites declining interest rates, investor demand for diversification, and improved access via tokenization and digital platforms as key growth drivers.

Private equity and private credit remain the largest segments, but infrastructure and real assets are expected to surge as governments and corporations race to fund AI-era data centers, renewables, and logistics hubs.

“Private markets will define the next decade of capital formation,” said Preqin Head of Research Mark O’Hare. “We anticipate a doubling of AUM, with retail participation playing a major role.”

Yet challenges remain. The study warns that liquidity constraints, valuation lag, and uneven manager performance could temper returns.

Skeptics caution the forecast may prove optimistic. “If interest rates stay higher for longer or exits remain clogged, growth could stall,” said strategist Lydia Chen of Morningstar.

Still, the long-term trajectory appears intact. As capital keeps rotating from public equities and bonds toward bespoke private strategies, alternatives look set to become a cornerstone of global portfolios — not a footnote.