Preqin Global Report 2023: Alternative Assets

In a time of economic uncertainty and geopolitical unrest, the alternative assets industry remains resilient. While the denominator effect is curbing LPs’ appetite for new capital commitments, and GPs are finding fundraising more challenging, alternatives assets under management (AUM) continues to grow. We expect AUM to rise from $13.7tn – as of year-end 2021 – to $23.3tn in 2027, a compound annual growth rate increase of 9.3%.

Preqin has continued to innovate during 2022 to ensure we deliver you best-in-class products and services. One of the most notable products we have launched this year is our Asset-Level Benchmarks, which we built in partnership with Colmore, a leading private markets technology, services, and administration business, which Preqin acquired in August 2021. Underpinned by aggregated, anonymized GP-reported portfolio data, these Benchmarks provide performance and valuation insights across 45,000 transactions, representing $3tn in deal value. This data is helping LPs optimize their asset allocation strategy, evaluate the GPs’ deal track records, and assess valuations of portfolio companies with comparable peers. It also enables GPs to peer review and to highlight the strengths of their investment strategies.

Every year, we invest in expanding our data coverage, and 2022 was no different. Across alternatives we now track over 25,000 LPs (up by 26% from last year), close to 55,000 GPs (up 11%), and nearly 160,000 fund profiles (up 13%) in our database. A big focus for GPs has been expanding their LP reach, and to help our clients identify more non-institutional LPs we have boosted our coverage of family offices and wealth managers by almost 60% since March 2022. We have also made it easier for our clients to access Preqin data with the launch of Excel and Salesforce plugins, as well as data integrations via Snowflake and AWS.

In 2022, working with many of our client base, we identified key development opportunities and focused our efforts in several other areas, namely:

Future planning

• Suggested LPs helps GPs identify relevant LPs for future networking and fundraising opportunities.
• Forward Calendar provides our clients with early sight of potential fundraises by estimating when we expect a GP to launch a follow-on vehicle in a fund series.
• Actionability Signal helps our clients assess the likelihood of an asset being open to investment in the next six months. This feature is part of our Company Intelligence (CI) dataset of portfolio companies, with coverage now surpassing one million financial data points.
  
  

Integrating ESG

• ESG Solutions, a full suite of tools providing ESG insights at scale, enables our clients to identify and evaluate ESG risks, impact, and opportunities. ESG Solutions now offers even more vital data such as metrics for carbon emissions and water withdrawals for more than 147,000 private portfolio companies.
  
  

Empowering teams with actionable intelligence and up-to-date information

• Insights+, our institutional research product powered by Preqin data, delivers exclusive analysis to help subscribers make the best strategic decisions. This year we extended our catalogue of reports to include portfolio optimization by asset class, guides to fundraising, and deeper analysis of performance across fund sizes.
• Preqin First Close, our new, complimentary newsletter available from Mondays to Thursdays, enables readers to track the latest developments in the alternatives industry with market and LP updates, key statistics, and information about our latest research.

As we look ahead to 2023, Preqin is well-positioned to serve the increasingly sophisticated needs of our growing network of clients across the globe. We work from 16 offices spread across four continents, delivering data, tools, and insights to around 200,000 alternative asset professionals.

Our company values and culture provide a strong foundation for our focus on exceptional customer service, integrity, and having a positive impact in our communities. Even amid a challenging period for the global economy, we see many opportunities for our industry and for our business. As the Home of Alternatives, we look forward to providing you with the most comprehensive and insightful view of the industry, to help you make the best possible business decisions.

From everyone at Preqin, we wish you a successful and rewarding 2023.

Christoph Knaack
Chief Executive Officer