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. 

US fund managers in private markets  

Rising geopolitical tensions, equity market volatility, and high inflation and interest rates have US-based private fund managers turning their attention to global private markets. 

The private market sector is set to see impressive growth in the coming years, with managers projecting the sector will reach $20 trillion by 2030, compared to $13 trillion in June 2023. Investor’s growing appetite for the risk-adjusted returns that private markets deliver is expected to be the main driver of this growth.  

However, our Atlas 24 report, based on a survey of more than 200 fund managers in the UK, Europe and the US, found that US-based managers are increasingly looking outside domestic private market opportunities. 

The survey found 88% of US managers already raise capital in Europe, and of the 12% that don’t, half have plans to do so. 

Other key findings from the survey include: 

• 85% of US managers responding to our survey expect to increase the level of outsourcing of their European business over the next five years 

• 70% said their main reason for outsourcing was to make it easier to launch different product sets 

• 60% said it was to deliver greater speed to the market 

The report also found increasing numbers of wealth managers and defined contribution (DC) pension scheme managers are looking to access private market assets. 

Among the US private market fund managers surveyed, 64% predicted that pension funds would increase their private equity investments by between 10% and 20%, while 44% thought wealth managers would increase their private equity investment by the same amount. 

While the macroeconomic backdrop in the US is largely behind the increased focus on European opportunities, changes in European regulations have also smoothed the transition. 

The introductions of the European Long Term Investment Fund (ELTIF) and the UK’s Long Term Asset Fund (LTAF) – both government-led attempts to make it easier for retail investors and defined contribution (DC) pension fund managers to invest in private markets – are working in US managers’ favour. 

Our Atlas 2024 report found the fund managers believe these vehicles will encourage wealth managers and DC schemes to invest in private markets over the next three years: 

• 44% of managers said wealth managers will increase allocations by between 10% and 15% 

• 18% said DC scheme increases will be up to 15%, while 78% expect it to be higher than this 

The full Carne Atlas 2024 report offers more insights into these regulatory incentives, as well as the deterrents faced by US-based managers. It also explores the ESG opportunities in Europe and the impact of AI. 

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