Our new Atlas 2024 report shines a light on the outlook of private markets. It is based on research with 201 global private fund managers and European asset allocators. Its findings range from challenges in capital raising for private market fund managers to ways in which wealth managers and DC pension schemes will invest in these markets. 

In the Pinpoint of view series, Carne experts take a deeper dive into some of the key themes cited in the report and how they see this unfolding. 

UK managers in private markets 

The UK’s private market fund managers expect private investments to flourish over the coming five years according to Carne’s inaugural Atlas 2024 Report. 

UK managers’ optimism aligns closely with that of their international peers, expecting the market to grow from $13 trillion in 2023 to $21 trillion by 2030. Among UK managers, private equity was ranked first as a ‘very attractive’ prospect for investors over the next five years, followed closely by venture capital and infrastructure. 

Key findings among the 50 UK managers surveyed by Carne include: 

• 94% already raise funds in Europe with the remaining 6% planning to do so in the next 12-24 months 

• 56% of managers expect pension funds to increase private debt investment by 10% or more over the next three years 

• 24% expect pension funds to increase private debt allocation by more than 20% 

Along with the headline growth and potential of private markets, the Atlas 24 report probes managers on the key factors underlying that growth and the concerns of investment managers.  

The number one challenge, according to UK-based managers, will be the ability to distribute across borders with regulation being the second most cited challenge. But some regulatory change also had a positive dimension with all UK-based managers seeing developments in Long-term Asset Funds (LTAFs) and European Long-term Investments funds (ELTIFs) as likely to increase private market investment. 

Our research also showed UK managers expect increasing pressure from investors to sharpen up their ESG credentials.  

• 98% expect an increase in fund managers losing their mandates over poor ESG  

• 36% expect this increase to be ‘dramatic’ 

These are just some of the key findings in Carne’s Atlas 2024 Report. The full report investigates these trends in greater detail as well as providing insights into the views of managers in continental Europe and the US. The report also includes further details on which specific private asset classes are attracting the most investor interest and the potential in innovative fund structures to attract new capital. 

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