According to PwC's global Asset and Wealth Management (AWM) survey, assets under management (AUM) in alternatives are poised to outpace overall growth, with a projected compound annual growth rate (CAGR) of 6.7 per cent, reaching US$27.6 trillion by 2028.
This surge reflects booming investor appetite for private equity, real estate, and infrastructure, underlining the industry's transition to more specialised, high-demand investment opportunities.
“Interest in private markets is accelerating the creation of multi-asset managers, and driving a step up in the acquisition of infrastructure, private credit and other potentially high-margin businesses,” said PWC.
The firm noted that global assets under management should reach US$171 trillion by 2028, reflecting a 5.9 per cent CAGR, up from the 5 per cent a year earlier.
PwC further highlighted the growing role of cryptocurrencies within alternative investments, as institutional allocations to digital assets rise. Specifically, 57 per cent of surveyed asset and wealth managers indicated that cryptocurrencies remain their preferred choice amid the digital asset surge.
Moreover, PwC flagged the growth of tokenised products as a key focus for innovation in asset management, with AUM in tokenised investment funds projected to surge from US$40 billion in 2023 to over US$317 billion by 2028.
Despite representing a small fraction of the overall market, this segment is growing at an impressive CAGR of over 50 per cent, driven by demand for greater liquidity, transparency, and broader access to alternative investments like private equity, real estate, and commodities.
In addition, regulatory easing around digital assets is creating new opportunities for AWM firms to diversify portfolios and appeal to a tech-savvy client base.
While only 18 per cent of firms currently offer digital assets, investor interest is rising, with 80 per cent of those offering digital products reporting increased inflows.
PwC also pointed out that disruptive technology is reshaping private market access, with apps and platforms allowing retail investors to buy small stakes in tokenised funds.
Tokenised fractional ownership is reducing investment barriers and enabling illiquid assets to be traded on secondary markets.
PwC’s survey reveals strong interest in tokenised private market assets, with more than half of asset managers and institutional investors naming private equity as their top tokenised asset class.
