New York (HedgeCo.net) – Alternative investment research firm Preqin recently released its year-end numbers for the alternative investment industry and the numbers were impressive. The report showed that alternative asset managers now manage a record $7.4 trillion and that is up $500 billion from 2014’s $6.9 trillion in AUM.

In terms of the breakdown, private equity firms now manage $4.2 trillion and the hedge fund industry has $3.2 trillion in assets. Last year was a tough year for the hedge fund industry and some of the industry indices have shown losses for the industry-wide, but the Preqin All-Strategies Hedge Fund benchmark returned 2.02% in 2015. While the benchmark gained ground, the return was down from the 4.65% return in 2014.

“The hedge fund industry has not enjoyed the same gains made in 2013 and 2014, although it has nevertheless grown to well over three trillion dollars. While the prolonged period of weak returns has taken its toll, returns are also difficult to find in other asset classes. 2016 looks set to be a challenging year, but the industry still has the potential for significant further growth,” said Preqin’s CEO Mark O’Hare.