Venture capital assets under management tripled between December 2016 and March 2021, from $574bn to $1.68tn. Global alternatives AUM forecast to double by 2026, topping $23 LP willingness to allocate more capital to diverse deal teams is prompting more GPs (52 percent in 202122) to share DEI data during fundraising. As of the second quarter of 2022, dry powder exceeded $3 trillion, reflecting an 8.4 percent year-over-year increase and marking the eighth consecutive year of growth. Infrastructure and natural resources grow and evolve, Private markets advance their ESG agendas. However, GPs who are willing and able to do the hard work have an additional lever to create value in companies and can potentially deliver alpha above their peers. A surge in deal-making drove global private equity deal value to a total of $603 billion as of October 2021, or $804 billion on an annualized basis, which Preqin notes would surpass a record the industry set in 2007. For real estate, 2022 was a year of relative highlights and challenges, with previously-struggling sectors finding stability, and top-performing sectors slowed by tailwinds. Retrieved from: https://www.capitaliq.spglobal.com/web/client?auth=inherit#news/article?KeyProductLinkType=2&id=67618330, [13] PE-backed SPACs in 2021 soar past last year's tally. MSIM announced today that it has held the final close of Ashbridge Transformational Secondaries Fund II (Ashbridge II) at $2.5 billion of total capital commitments. For illustrative purposes only. Labor shortages in the wake of the pandemic are undoubtedly playing a role in the overall picture. Leapfrog tech potentially has the ability to further accelerate growth, thereby offering the opportunity for outsized returns. NR outperformed all others, returning 15.6 percent in a second consecutive year of strong performance driven by rising commodity prices. Both sectors attractiveness has increased from last year (30% and 26% respectively). . Ethnic, racial, and gender representation also remains imbalanced in senior positions and investing roles, suggesting that firms broadly continue to miss talent opportunities. Trial by fire: Indian PE ecosystem resilient in a globally challenging year. S&P Capital IQ Pro. /pub/content/dam/im/json/imwebdata/im/data/misc/translation/translation.json, /pub/content/dam/im/json/imwebdata/im/data/misc/translation/aggTranslation.json. After making an investment, GPs have five value creation levers they can pull to improve their portfolio: Pontus Averstad is a senior partner in McKinseys Stockholm office; Alejandro Beltrn is a senior partner in the Madrid office;Marcel Brinkman is a partner in the London office; Paul Maia is a partner in the New Jersey office; Gary Pinshaw is a senior partner in the Sydney office; David Quigley is a senior partner in the New York office, where Aditya Sanghvi is a senior partner; andJohn Spivey is an associate partner in the Boston office, where Brian Vickery is a partner. AUM has now grown at an annual rate of nearly 20 percent since 2017. Last year may go down as a pivotal year in the history of alternative assets. 2 Preqin, data as of September 2022. These conclusions are speculative in nature, may not come to pass, and are not intended to predict the future of any specific Morgan Stanley investment. Private equity surged ahead with soaring deal and exit values. Catch new episodes by subscribing toDry PowderonApple Podcasts,Google Podcasts,Spotifyor wherever you may listen. Download Alternatives in 2022 | Preqin On the supply side, the closing of a record number of global megafunds boosted fundraising.