Private capital’s big push for private wealth

If private markets are going to continue to grow, as Preqin forecasts, where will new capital come from?  

We explored the question recently in Preqin First Close. Our simple answer: more from all sources currently investing. Here, we take a second look at the subject, with a focus on demand from wealthy individuals. 

Private wealth to lead private equity growth over next eight years 

Management consultancy Bain & Company predict in their Global Private Equity Report 2025 that 75% of the increase in assets under management (AUM) between now and 2033 will come from institutional investors. It forecasts sovereign wealth funds (SWFs) will account for 35% of the total growth, with SWF exposure growing by 11% annually over the next decade, to reach $17tn.  

A quarter of AUM growth will come from private wealth, including high-net-worth and ultra-high-net-worth individuals, as well as the mass affluent. 

Private debt stepping into the spotlight with private wealth investors 

There was a notable increase in activity across alternatives among private wealth investors in 2024, according to Preqin data. Private equity and real estate remain the most popular, with the proportion of private wealth investors telling our research teams they’re active in the asset class rising from 70% in 2023 to 78% last year for private equity, and from 68% to 74% for real estate (Fig. 1). 

Private debt is a fast-growing area of interest, with 42% of private wealth investors saying they’re active in the asset class.

Fig. 1: Proportion of private wealth investors active in each asset class 

_{Source: Preqin Pro. Data as of February 2025} 

In private equity, buyouts is the most popular strategy among private wealth investors – and by a large margin. Of those who shared their plans with us, 69% say they will target the strategy over the next 12 months, down only slightly from 71% in 2023 (Fig. 2). 

Growth and secondaries also remain in favor, with 55% and 34% of investors, respectively, planning to target the strategy over the next 12 months.

Fig. 2: Strategies targeted over the next 12 months by private wealth investors active in private equity* 

_{*Strategies targeted by less than 5% of investors not included. 
Source: Preqin Pro. Data as of February 2025}

When it comes to private debt, direct lending holds the top spot among private wealth investors – 49% have told us they plan to target the strategy over the next 12 months, up from 46% last year (Fig. 3). 

Distressed debt isn’t far behind, with 38% looking to target it. Meanwhile, fund of funds remains one of the least popular strategies, though investor interest in it has grown since last year (from 6% to 9%). 

Fig. 3: Strategies targeted over the next 12 months by private wealth investors active in private debt* 

_{*Strategies targeted by less than 5% of investors not included. 
Source: Preqin Pro. Data as of February 2025}

The GPs already tapping private wealth growth 

Asset managers who moved early to attract private wealth are reaping the rewards. Blackstone, which started its push 14 years ago, has said it saw $23bn flow into its semi-liquid products last year, accounting for 20% of total inflows.  

Some other big GPs were late to the party but are now making up for lost time. Apollo Global Management launched its wealth solutions business in 2021 and raised $12bn via the channel last year. It plans to double its wealth management team. 

These new investor pools require a holistic approach, encompassing education, distribution, and portfolio management.

As Bain & Company points out: ‘The requirements to tap that growth will likely look very different from what most GPs are doing today.’

Grant Murgatroyd is Head of News at Preqin, and Libby Fennessy is Production Editor of Preqin First Close. 

Special thanks to Elliott Donnelly, VP in Preqin’s EMEA Investor Data team, based in London. Preqin has 15 offices across the globe and a team of over 500 researchers. It combines technology and relationships built over 20 years to gather proprietary and public data on the alternative assets market.  

Read the original story in Preqin First Close, your essential newsletter for the global alternatives industry.  

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_{The opinions and facts included in the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin accepts no liability for any decisions taken in relation to the above.}