insight 1
What is the overall sentiment of investors regarding private markets in 2025?
Investors expect 2025 to present an improving backdrop for dealmaking and liquidity, which should benefit fundraising in turn. Optimism revolves around the expectation that innovation and disruption are accelerating, regulatory and antitrust oversight will decline, and a strong supply of capital will help reduce the backlog of exits for private equity firms.
insight 2
Which sectors and strategies are seen as the most promising for private markets investments in 2025?
Technology and healthcare are the top sectors, identified by 47% of respondents to our fifth annual global investor survey. AI-driven innovation and digital transformation continue to fuel interest in these areas. Co-investments were viewed as offering the best investment opportunity by 32% of respondents, followed by Impact and/or ESG investing (31%), real estate (29%), secondaries and private equity buyouts of private companies (both 28%), venture capital (26%) and private credit (22%).
insight 3
What roles do co-investments and secondary markets play in portfolio strategies?
Co-investments can often be a cost-efficient way for Limited Partners (LPs) to gain exposure to private markets, with 88% of survey respondents planning to allocate up to 20% of capital to this strategy. Secondaries continue to be crucial for liquidity management and portfolio rebalancing, with transaction volumes reaching a record $162 billion in 2024.1
insight 4
How is AI shaping private market investments?
AI is driving significant investment, particularly in venture capital and growth equity. In 2024, AI-native startups accounted for nearly half of global venture deal value, with total venture deal activity reaching $209 billion—exceeding pre-covid levels2 and signaling a long-awaited recovery. 26% of survey respondents plan to deploy more capital in venture this year, reflecting a year-on-year increase of over 50%—the largest growth for any strategy among responding LPs.
insight 5
How is private credit evolving as an investment strategy?
Private credit is currently one of the strongest-performing asset classes in private markets, with assets under management (AUM) reaching $1.6 trillion in 2023, and managers holding $520.2 billion in dry powder.3 Investor sentiment toward floating-rate private credit remains positive, as its spread (relative yield) over comparable public debt instruments remains attractive. Additionally, lenders typically secure better terms and stronger creditor protections than in public markets.
insight 6
What is the outlook for dealmaking and exits in 2025?
Private equity dealmaking saw a 25% rebound in 2024,4 and this trend is expected to continue. M&A and IPO markets are also showing signs of recovery, providing increased liquidity for investors.
insight 7
What are the key factors influencing fundraising in 2025?
Survey respondents expect an improvement in liquidity to drive a fundraising revival. LPs noted they planned to prioritize managers with sector expertise, individual portfolio manager experience, and advanced digital analytics capabilities.
insight 8
What are the key investment challenges in 2025?
The greatest concerns for LPs include inflation cited by 86% of survey respondents, followed by interest rates and geopolitical tensions—particularly US-China relations, the Ukraine-Russia war, and US political instability.
insight 9
How are investors responding to geopolitical risks?
More than 80% of survey respondents expect geopolitical events to impact their investment decision-making; US-China trade tensions, potential policy shifts under US President Donald Trump, and global economic realignments are key considerations.
iNsight 10
What is the future of ESG investments in private markets?
Investor interest in ESG investments has waned, with only 31% of survey respondents ranking it as a top opportunity—down from 46% of respondents last year. This decline appears to reflect growing political divisions over ESG policies in key markets.
Read the full report, 2025 Global Investor Survey: Navigating Private Markets.
1. Jefferies, Global Secondary Market Review, Page 2, January 2025
2. PitchBook and National Venture Capital Association Venture Monitor Q4 2024, January 13, 2025, Pages 7-9
3. PitchBook, H1 2024 Global Private Debt Report, Page 4, September 24, 2024
4. S&P Global Market Intelligence Private equity, venture capital deal value jumps 25% in 2024, January 14, 2025
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