Rising from Uncertainty: Private Equity & Venture Capital Poised for Robust Growth by 2028

By: Logan Henderson | Published: 01/25/2024
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The outlook for private equity (PE) and venture capital (VC) sectors is heading towards a significant recovery, with predictions suggesting that fundraising will match the highs of 2021 by 2028. Despite the initial skepticism due to current macroeconomic and geopolitical climates, there are compelling reasons to believe in the feasibility of such growth.

Key to this optimistic forecast is the expected surge in nominal GDP, which the White House projects to be about 38% higher in 2028 than in 2021. This economic expansion lays a robust groundwork for the continued evolution and democratization of private markets, enabling the deployment of larger capital volumes more efficiently.

Additionally, the penetration of private investments into high-net-worth portfolios is anticipated to grow, with Bain forecasting a 12% annual increase in exposure to alternative investments. This shift reflects a broader acceptance and reliance on private markets for portfolio diversification and enhanced returns.

As we look towards 2028, the PE & VC sectors are poised not only to recover to their pre-pandemic levels but also to capitalize on the growing investor confidence in private markets. Integrating alternative assets into investment strategies is becoming increasingly mainstream and underscores the significant potential for growth and transformation in the private markets over the coming years.

-Logan Henderson, CEO

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