Total private capital assets management have doubled in the past
six years to reach $12 trillion. In The New Dynamics of Private
Markets, PGIM analysts take a long-term view of the context of
this growth and the future direction mainly as it affects
investors. Highlights of the report include the discussion on
private credit where there appears to be plenty of runway for
further growth and the estimate for potential overall private
capital growth from retail participation through, for example,
greater defined contribution plan participation.
We do have one small bone to pick: As FFF readers know,
we don't love it when subscription lending is described as
leverage, much less when it's classified as a “source
of hidden leverage.” A fund's total buying power is the
same after incurring a subline as before − it's capped
at the total capital commitments to the fund. Many of the dark
insinuations about sponsor motivations fall away once that little
point is clarified.
