Pitchbook Forecasts Private Capital Set to Hit $24 Trillion by 2029

What's New

PitchBook's "2029 Private Market Horizons" report forecasts global private capital assets under management (AUM) will reach $24.1 trillion by 2029, up from nearly $19 trillion today, reflecting a more moderate 5.2% annual growth rate compared to the rapid expansion of the previous decade.

Why It Matters

This projected slowdown signals a maturing private markets ecosystem while highlighting structural shifts in how capital is raised and deployed across strategies. The industry is evolving from institutional dominance toward greater accessibility through wealth channels and evergreen structures.

Key Insights

• Evergreen revolution: Evergreen structures are transforming private markets with $2.7 trillion currently in indefinite-life vehicles projected to reach $4.4 trillion by 2029

• Wealth integration: Private capital managers are increasingly targeting high-net-worth individuals with semiliquid products offering simplified access

• Strategy divergence: PE and private debt lead growth projections while VC and real estate face continued headwinds from valuation resets and limited exit paths

• Institutional recalibration: Traditional LPs face distribution challenges across multiple asset classes, constraining their ability to recycle capital into new funds

• Regional shifts: North America dominates with $16.4 trillion projected by 2029, Europe grows modestly to $4.4 trillion, while Asia's AUM may contract to $2.7 trillion amid geopolitical concerns

Big Picture Drivers

• Wealth expansion is transforming fundraising as high-net-worth individuals become a critical capital source, driving growth in evergreen, semiliquid fund structures offering continuous fundraising and periodic liquidity.

• Insurance partnerships are increasingly important for public GPs, especially in private debt, as insurers seek diversification from public fixed income through private strategies with attractive yields.

• Technological integration across AI, energy transition, and infrastructure has elevated real assets' strategic importance in bridging current capabilities and future needs.

• Geopolitical tensions including trade policy uncertainty and growing US isolationism have clouded the near-term outlook, potentially constraining growth across strategies.

• Institutional permanence is reshaping capital deployment around evergreen platforms rather than closed-end fund cycles, creating more stable recurring revenue streams.

By The Numbers

• 5.2% projected CAGR for private capital AUM through 2029

• $2.7 trillion currently in indefinite-life structures, forecast to reach $4.4 trillion by 2029

• $427 billion in wealth-focused evergreen vehicles by end of 2024, expected to grow 20% annually

• $7.7 trillion projected PE AUM by 2029 (largest segment at 32.2% of total)

• $4.9 trillion expected private debt AUM by 2029, up from $3.3 trillion in 2024

Key Trends to Watch

• Private wealth channels will continue driving innovation in fund structures as managers develop products designed for individual investors seeking alternatives exposure.

• Secondaries market activity will accelerate as investors demand liquidity solutions amid muted M&A and IPO activity, supporting robust 9.2% annual growth in this segment.

• Digital infrastructure investment will surge as AI workloads and broader electrification amplify demand for datacenters, fiber networks and power systems.

• Venture capital recovery will likely lag other private market strategies as distribution rates remain low and capital recycling mechanisms struggle to restart.

The Wrap

While private markets' growth trajectory remains positive, the path forward will be marked by increased volatility and complexity. Success will depend on managers' ability to adapt to shifting capital formation channels, capitalize on emerging technological imperatives, and navigate heightened geopolitical uncertainty.