BCG Report | Sovereign Wealth & Pension Funds Reshape $36T Private Market Landscape
- Editor
- Jan 4
- 1 min read
What’s New:
Sovereign wealth funds (SWFs) and public pension funds (PPFs) are revolutionizing private markets. The latest BCG report reveals these principal investors control up to 70% of private assets globally, driven by more active strategies like co-investments, direct deals, and strategic partnerships.
By the Numbers:
Total SWF and PPF assets reached $36 trillion in 2024, with a projected 6% CAGR through 2030.
Private market allocations have grown 10% annually over the past decade.
The top 10 SWFs manage 70% of sovereign wealth assets; top 10 PPFs handle 40–45% of pension assets.
Key Trends to Watch:
Surging asset classes: Infrastructure and private credit lead growth, with 14% and 20% CAGRs, respectively (2014–2023).
Geopolitical shifts: China’s share of global deal value has fallen from 6% in 2020 to 2% in 2024 due to geopolitical tensions.
Strategic alignment: Investments increasingly support national development goals and ESG priorities.
Key Sentiment:
Overall sentiment: BCG remains optimistic about long-term private asset growth despite recent challenges.
Bullish factors: Private markets have historically outperformed public markets, offering superior diversification. Historically high dry powder and a more active deal environment present conditions for a rebound in market activity.
Bearish factors: Liquidity pressures are mounting as net distributions to limited partners hit decade lows in 2023.
Link to BCG article
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