Blackrock has released its 2024 Private Markets Outlook report, detailing significant trends and forecasts in the private capital sector.
The report highlights that the private capital industry’s “dry powder” has reached a landmark $4 trillion. Within this, private debt now represents 12% of the $13 trillion alternative investment universe, amounting to over $1.6 trillion globally as of March 2023.
Blackrock projects the global private debt market could grow to $3.5 trillion in assets under management by 2028.
The outlook emphasises a strategic, defensive approach to investing in private debt, particularly in senior direct lending, amid diverse market conditions.
The report notes varying performances in the US commercial real estate market, with challenges in office spaces but robustness in industrial and non-mall retail sectors.
In the realm of private equity, the current economic landscape, marked by rising interest rates and uncertainties, has led to a slowdown in deal activity and a slight decrease in valuations. However, opportunities are emerging, particularly in take-private transactions.
The report also discusses the infrastructure sector, highlighting its resilience amid economic volatility. The focus is on the growth potential in low-carbon energy sources and the significance of battery and energy storage systems.
For real estate, Blackrock notes a trend of declining valuations and transaction volumes but points out opportunities for non-bank lenders and the impact of demographic shifts on various sectors.
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