Partners Group

The firm, which closed its first vehicle in the series just three years ago, now has raised one of the largest funds ever in the strategy.

AI is touching every aspect of the alternative assets industry - from internal applications to portco value creation and investment opportunities. But there are risks ahead, with overhype and regulatory uncertainty partly clouding the path forward.

The top force fuelling M&A among private markets managers is the ambition to become as relevant to private wealth and insurance money tomorrow as institutional capital today.

Opening up alternative assets to non-institutional investors, from HNWIs to 401(k) account holders, represents up to $80trn. It's an alluring pot of capital for an industry with flatlining annual fundraising figures in some asset classes. And yet, multiple headwinds exist, making the journey towards increasing democratisation far from straightforward.

With globalisation in retreat, the implications for private investment are complex. In areas like manufacturing, the push is toward reshoring of portfolio company operations. In risk management, many investors see diversifying their global exposure as key.