Investments in alternative assets are projected to reach $32 trillion by 2030, driven by growth from wealthy investors. Total assets under management in private equity, hedge funds, real estate, and more are expected to grow by 60% in the next five years, according to Preqin.

A report predicts a new growth cycle in private markets fueled by IPOs, mergers, falling interest rates, and the AI boom. Assets in private credit are set to double to $4.5 trillion by 2030, despite fundraising from institutional investors declining due to lack of distributions and poor performance.

The private equity industry is banking on wealthy investors to power the next growth wave. Ultra-high-net-worth individuals, family offices, and private-wealth managers are expected to make up a significant portion of flagship fund capital in the future.

Family offices are shifting allocations away from private equity to public stocks, while focusing more on direct investments in companies. Surveys suggest that as deal activity picks up, family offices and ultra-wealthy investors are planning to increase their allocation to private equity funds in the next 12 months.

Read more at CNBC: Wealthy investors expected to drive $32 trillion alternatives boom