As part of its Future of Alternatives initiative, Preqin predicts that the alternative assets industry – comprising private capital and hedge funds – will reach $14tn in assets under management by 2023. The industry currently holds $8.8tn in assets as of the end of 2017, but is predicted to expand by 59% over the next five years (a compound annual growth rate of 8.0%). Private equity funds are predicted to overtake hedge funds to become the largest alternative asset class.