Private investors are increasingly looking to alternative investments for capital growth for several key reasons:

1. Diversification: Alternative investments, such as private equity, real estate, and hedge funds, have low correlation to traditional asset classes like stocks and bonds. By including alternatives in their portfolios, investors can reduce overall risk and achieve better risk-adjusted returns
2. Access to growth opportunities: The number of publicly traded companies has declined by 26% since 2000, while the number of private companies has grown significantly. Private equity managers can drive operational improvements in portfolio companies, enabling them to consistently outperform global public equity markets by 4-12% annually.
3. Potential for higher returns: Alternative investments, particularly private equity and hedge funds, have the potential to generate higher risk-adjusted and absolute returns compared to traditional assets. This is due to factors such as higher growth, lower costs, and the ability to hedge downside risk.
4. Inflation hedging: Some alternative assets, like real estate and infrastructure, can provide an inflation hedge as their value is tied to physical assets or long-term contracts with inflation-linked revenue.
5. Attractive yield generation: With low yields in traditional fixed income, alternative investments like private credit can offer a premium for providing capital where it's scarce, generating attractive income streams for investors.

As the market for alternative investments continues to grow rapidly, reaching $10.7 trillion in 2020 and expected to reach $17 trillion by 2025, private investors are increasingly allocating capital to these non-traditional assets to achieve their goals of diversification, growth, and yield enhancement.