At M&G Investments we have been actively investing in private markets for over 25 years, navigating economic cycles with our innovative thinking.
Private market investments, which are not traded on stock exchanges and can include private equity, private debt and real estate, have historically been dominated by institutional investors. However, the so-called ‘democratisation’ of private assets is broadening access to the asset class. Regulatory changes and new product developments are making private assets available to a much wider spectrum of investors, which could drive the growth in private markets in the coming years.
Source: M&G 31 December 2024.
By asset class
M&G is one of Europe’s largest private asset investors, with private markets accounting for around 25% of our total AUM. Our capabilities span across real estate, alternatives, infrastructure, private equity, private debt and more.
Source: M&G, as at 31 December 2024
Global private markets have expanded significantly since the global financial crisis as more and more investors have been attracted by the potential of higher returns compared to traditional public market investments as well as portfolio diversification benefits.
Private markets assets are forecast to reach $29 trillion by 2027, up from $20 trillion in 2022*, driven, in part, by the shifting sands between public and private markets. With companies opting to stay private for longer, an enlarging opportunity set – across private debt and private equity in particular – is emerging for investors.
Gaining entry to private assets needn’t be a challenge. As private markets continue to evolve, a changing regulatory landscape, including the introduction of new fund structures such as the European Long-Term Investment Fund, is helping redefine the space.
These developments have improved accessibility and enabled the creation of a range of different products offering investors exposure to the diverse spectrum of this previously hard-to-access world, opening the doors for a broader client base to incorporate private assets into their portfolios.
*Source: BCG’s Global Asset Management Market Sizing, 2023