In its assessments of the alternatives industry, Preqin expects AUM growth in alternative assets to average 9.8% per year to 2025. Low interest rates will attract investors of all types drawn to the promise of outperformance, diversification and lower correlation with public markets. Private equity and private debt assets are set to grow by 15.6% and 11.4% per year, respectively, while all other asset classes are expected to grow at a rate of 5% per year or less. High valuations on blue-chip stocks will strengthen the case for investors to target private equity as a route to access the most promising start-ups and growth companies. As a result, 81% of investors said they expect to increase allocations to alternatives.