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Global alternative assets to hit US$15.3 trillion by 2020: PwC
GLOBAL alternative assets will reach US$15.3 trillion by 2020, predicts PwC, resulting in a five-year period of transformation within the industry.
Unconventional and often not found in a standard investment portfolio, examples of alternative assets include venture capital-related projects and infrastructure; or even art and antiques, precious metals, and other collectibles.
In its report titled "Alternative Asset Management in 2020: Fast Forward to Centre Stage", PwC said that in the lead up to 2020, players will calibrate their businesses and operations and make technology a top investment priority.
"(For alternative firms), the next five years will see it become mission critical in driving investor engagement, data-informed decision making, operational and cost efficiency, and regulatory and tax reporting," said PwC.
It added that Asian investors - particularly institutional and high net worth investors from China - make up a significant and often largely-untapped opportunity for alternative firms.
At the same time, PwC sees assets under management in South America, Asia, Africa and the Middle East (SAAAME) growing faster than in the developed world.
"This growth will be exemplified by the growth of sovereign assets and the projected emergence of new sovereign Investors, the vast majority of which will originate from SAAAME," said PwC, adding that the largest increases in allocations will likely be in private equity, real estate, and infrastructure.