According to PwC’s Global Asset and Wealth Management (AWM) Survey, assets under management (AUM) in alternative sectors are poised to outpace overall growth, with an expected compound annual growth rate (CAGR) of 6. 7 percent, to reach US$27.6 trillion by 2028.
The rise reflects growing investor appetite for private equity, real estate and infrastructure, highlighting the sector’s shift towards more specialized and high-demand investment opportunities.
“Interest in private markets is accelerating the creation of multi-asset managers and leading to an acceleration in the acquisition of infrastructure, private credit and other potentially high-margin businesses,” PwC said.
The company noted that global assets under management are expected to reach $171 trillion by 2028, reflecting a CAGR of 5.9 percent, up from 5 percent a year earlier.
PwC further highlighted the growing role of cryptocurrencies in alternative investments, as institutional allocations to digital assets increase. Specifically, 57% of asset and wealth managers surveyed indicated that cryptocurrencies remain their preferred choice amid a surge in digital assets.
Additionally, PwC flagged the growth of tokenized products as a key focus of innovation in asset management, with assets under management of tokenized investment funds expected to grow from $40 billion in 2023 to over $317 billion. dollars by 2028.
Although it represents only a small fraction of the overall market, this segment is experiencing impressive growth of more than 50 percent, driven by demand for greater liquidity, greater transparency and access broader to alternative investments such as private equity, real estate and commodities.
Additionally, easing regulations around digital assets create new opportunities for AWM companies to diversify their portfolios and attract a tech-savvy customer base.
While only 18% of companies currently offer digital assets, investor interest is increasing, with 80% of those offering digital products reporting increased capital flows.
PwC also highlighted that disruptive technology is reshaping access to the private market, with apps and platforms allowing retail investors to buy small stakes in tokenized funds.
Tokenized fractional ownership reduces investment barriers and enables trading of illiquid assets on secondary markets.
PwC’s survey reveals strong interest in private market tokenized assets, with more than half of asset managers and institutional investors citing private equity as their primary tokenized asset class.
