Accurate projections about the future are crucial to profitable investment - these can be difficult to make at the best of times, made all the harder by private markets' opaque and uncertain environment. Unlike in public markets, all we have is low-frequency data based on a small number of observations, which renders the majority of textbook forecasting tools either unreliable or not applicable.

To help us look ahead to the next five years of growth and evolution in alternative asset investing, Preqin has devised a universal forecasting machine to predict assets under management. In this white paper, our Data Science team explains how the model works, and why it can perform well under private market conditions.

This model formed the basis of our forecasting in the 2022 Preqin Global Alternatives Reports, now available to Preqin Insights+ subscribers.