Preqin Sees Private Markets Topping $34 Trillion by 2031 as Credit and Infrastructure Expand

Global alternative assets under management are projected to exceed $34 trillion by the end of 2031, according to a new five-year forecast from BlackRock-owned Preqin, with private credit, infrastructure and private equity expected to drive substantial growth across institutional investment portfolios.

The forecast, released by New York-based BlackRock projects private equity assets reaching $11.6 trillion, private credit surpassing $5 trillion, venture capital reaching $3.79 trillion and infrastructure growing to $2.74 trillion. The projections point to a larger but increasingly differentiated investment market in which liquidity, underwriting standards and manager selection will influence returns.

The $34 trillion headline encompasses Preqin’s broader alternative investment universe, including hedge funds, rather than private capital funds alone. The distinction matters when comparing the forecast with narrower estimates of private equity and private debt market size.

Private Equity Assets Forecast to Reach $11.6 Trillion

Preqin expects global private equity AUM to reach $11.6 trillion by 2031, supported by improved investment performance and a recovery in capital distributions.

Growth equity and private equity secondaries are projected to expand faster than traditional buyout strategies, reflecting differences in investment opportunities, portfolio liquidity and the availability of capital.

For institutional investors, the pace of distributions remains an important consideration. Pension funds, endowments and other limited partners depend partly on proceeds from existing investments to finance new fund commitments without continually increasing their overall exposure to illiquid assets.

Secondary transactions offer an alternative source of liquidity by allowing investors to sell existing fund interests or restructure portfolio ownership.

The expansion is already visible in fundraising activity. PE NEWSWIRE previously reported on CVC’s $10 billion private equity secondaries fund, which closed in September 2026 after exceeding its $7 billion target.

That transaction provides a practical example of how institutional demand for liquidity solutions is supporting the growth of specialist investment strategies.

However, a larger secondary market does not automatically resolve the industry’s distribution challenges. Transactions can provide liquidity to selling investors while transferring exposure to new buyers, rather than generating cash through the sale of underlying portfolio companies.

Private Credit Expected to Surpass $5 Trillion

Private credit represents another major component of Preqin’s outlook, with AUM projected to exceed $5 trillion by 2031.

Importantly, the forecast covers private credit funds with underlying corporate lending exposure. It does not fully capture the broader universe of asset-based finance, investment-grade private lending and certain insurance-related investment mandates.

That methodological distinction suggests the economic footprint of nonbank lending could be considerably larger than the reported fund-based figure.

According to BlackRock’s official Preqin forecast announcement, evergreen investment vehicles are expected to be the fastest-growing segment of private credit.

Unlike traditional closed-end funds, evergreen vehicles generally permit ongoing subscriptions and may offer periodic redemption opportunities, subject to fund-specific restrictions.

These structures can broaden access to private credit among wealth managers and individual investors, while providing asset managers with a more continuous fundraising model.

Nevertheless, the liquidity offered to investors must be managed against the longer-term and frequently illiquid nature of underlying loans.

The expansion of private credit also raises questions about underwriting discipline, borrower leverage and the ability of managers to preserve returns as competition for lending opportunities increases.

PE NEWSWIRE’s recent analysis of private markets managers’ legal risks from evergreen funds and AI examines related governance, liquidity and regulatory considerations as alternative asset managers expand their investor bases.

AI Investment Supports $3.79 Trillion Venture Capital Outlook

Preqin’s base-case forecast places global venture capital AUM at $3.79 trillion by 2031, with artificial intelligence expected to influence company formation, investment opportunities and portfolio valuations.

The research identifies opportunities in the AI application layer, where businesses use underlying models and computing infrastructure to develop commercial products and services.

AI could also reduce certain costs associated with launching and operating technology businesses, potentially changing the amount of capital required to establish new companies.

However, lower company formation costs do not necessarily translate into stronger venture capital returns.

The investment outcome will depend on business models, competitive differentiation, entry valuations and the ability of portfolio companies to achieve profitable exits.

Preqin has therefore modeled alternative scenarios reflecting different rates of AI adoption and their potential effects on venture fundraising, valuations and realizations.

Infrastructure AUM Projected to Reach $2.74 Trillion

Infrastructure is forecast to reach $2.74 trillion in AUM by 2031, representing annualized growth of 9.8%.

Preqin identifies three principal demand drivers: power and energy security, digital connectivity, and supply-chain resilience.

These themes encompass investment requirements across electricity networks, energy generation, digital infrastructure and logistics-related assets.

The expansion of AI computing capacity adds another dimension to infrastructure demand because data centers require substantial electricity supplies, grid connections and supporting facilities.

For institutional investors, infrastructure can provide exposure to long-duration assets with cash flows that may differ from traditional corporate earnings. Actual risk and return characteristics, however, vary considerably between regulated utilities, contracted infrastructure and development-stage projects.

The growth forecast also creates a deployment challenge for infrastructure managers, particularly where project permitting, construction costs and financing requirements limit the supply of investable assets.

North America to Retain Dominance in Global Alternatives

Preqin expects North America to remain the largest alternative investment market, with more than $23 trillion in AUM by 2031.

Europe is projected to exceed $7 trillion, while Asia-Pacific is expected to approach $3 trillion.

These figures suggest North America will continue to account for roughly two-thirds of the projected global total, although the precise regional shares will depend on actual market growth.

The geographic concentration has implications for institutional portfolio construction, particularly for investors seeking to diversify exposure across currencies, regulatory environments and economic cycles.

Europe’s infrastructure investment requirements and Asia-Pacific’s expanding private capital ecosystem offer potential opportunities, but regional allocations will remain sensitive to market access, valuations and manager availability.

Fundraising Recovery Depends on Liquidity and Investment Returns

Preqin anticipates renewed fundraising growth through 2031, supported by improving liquidity, evolving investor allocations and an expanding range of investment strategies.

The forecast combines proprietary private markets data with BlackRock Capital Market Assumptions to estimate performance and fundraising over the five-year period, as outlined in Preqin’s Private Markets in 2031 research.

For limited partners, the projections raise an important distinction between asset growth and realized investment performance.

AUM can increase through new commitments, retained portfolio value and investment appreciation. None of these measures independently establishes that investors have received stronger cash distributions or higher realized returns.

Similarly, an expanding private credit market may create additional lending capacity without guaranteeing that new investments achieve the same risk-adjusted returns as earlier vintages.

The forecast therefore presents institutional investors with two interconnected questions: how much additional capital to allocate to private markets and which strategies can deliver attractive returns after fees, financing costs and liquidity constraints.

The industry’s projected expansion to more than $34 trillion provides a measure of its potential scale. The more consequential investment decisions will concern the composition, liquidity and performance of that capital as private markets enter the next five-year period.