Alternatives in 2024: from transformative tech and an evolving ESG landscape, to private wealth

Welcome to the weekly round-up of highlights from our free daily Preqin First Close newsletter, your essential guide to the global alternatives industry. I’m Jayda Etienne, Deputy Editor, and every Friday I select exclusive news and insights from the past week.

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Let’s kick things off with some trivia – It’s the most wonderful time of the year. It’s also pretty expensive. In the run-up to the festive season, how much does average UK household spending increase by?

a)?????15%

b)???? 29%

c)????? 37%

d)???? 45%

Find the answer at the end of the newsletter.

The big trends and talking points in private markets this year

Private wealth has been a perennial theme in alternatives 2024. A significant increase in demand for private markets exposure from high-net-worth-individuals and the mass affluent could be ‘transformative’ for fund managers and professional advisors, especially as global fundraising across all asset classes remains subdued.

There’s been a great deal of product innovation and new fund structures to address historical barriers to entry for private investors. For example, the number of evergreen funds has nearly doubled in the last five years, boosting alternatives by $350bn.

AI and machine learning took centre stage with eye-watering valuations, as well as a good chunk of VC investment. Other transformative tech industries such as robotics and semiconductors also powered VC deals, raising questions about the future of work.

On the ESG front, new regulations and reporting standards saw some investor’s sentiments adjust. Others, such as Wellington Management went full steam ahead, raising debut climate funds.

In our Preqin First Close ESG Q&A series, we spoke with?Impact Institute?and?Thruline Networks?about impact investing, asked?Kirkland & Ellis?about regulation and politicization of ESG in the US, and interviewed?GEF Capital Partners and?Just Climate about sustainability, climate change, and the energy transition.?

Japan has proved to be one of Asia’s most intriguing markets in 2024. Investors are increasingly bullish about the country’s prospects, evidenced by the growth of Japan-focused fundraising, leading buyout market in APAC (by transaction volume), and thriving office sector; further bolstered by Blackstone’s record $2.6bn acquisition of Tokyo Garden Terrace Kioicho this month.

What’s on the horizon? Preqin predicts the global alternatives market will reach $30tn AUM by 2030. Private wealth coupled with a weak exit market are expected?to make secondaries the fastest growing area of alternatives. And private credit is on a rapid growth trajectory, with a ‘generational opportunity’ for funds, asset managers, and insurers, according to McKinsey.

This year ushered in the start of a monetary-easing cycle. Will some of the tactics and techniques developed in the downturn become?permanent features? What novel approaches to fund finance will stick??Time to consult the crystal ball…

Get the comprehensive round-up of top Preqin News and Preqin First Close stories in 2024.

Alternatives in 2025: How is the alternatives industry faring in a changing macroeconomic landscape? Harsha Narayan, Senior Writer, summarizes how market volatility has impacted the asset classes this year – and next – in our annual review.

Weekly people moves from service providers and advisors around the world including Dentons, JP Morgan Chase, and White & Case.

b) 29%

According to the Bank of England, in the run-up to Christmas, households spend on average an additional ￡713 in December, 29% more than in a typical month. Spending on books and video and music equipment increases the most, more than doubling. Drink and specialist food sales swell by around 38% and 22%, respectively.?Those mince pies sure add up!

We’re taking a short break until the next issue on January 10. Huge thank you to our LinkedIn subscribers and daily newsletter readers around the world for all the ideas, feedback, and support. Let us know in the comments if there are any topics you'd like us to cover next year or contact me at [email protected].

Wishing you all a very happy and successful 2025! ??

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