A Year Of Disruption In The Private Markets

McKinsey & Company

Research

64 Pages

McKinsey & Company examines how private markets navigated the pandemic shock, highlighting a sharp but uneven recovery across asset classes and a shift in investor behavior. Private equity rebounded quickly with returns above 14%, while real estate lagged, raising questions about whether resilience is structural or cycle-driven.

Key Takeaways

Private Equity Outperformance: Global net returns exceeded 14%, outperforming public markets and reinforcing investor preference despite 2020 volatility.
Secondaries Fundraising Surge: Capital raised in secondaries funds tripled in 2020, signaling growing demand for liquidity solutions and portfolio rebalancing tools.
Private Debt Resilience: Fundraising declined just 7% YoY, with North America increasing 16%, positioning the asset class as a relative safe haven during disruption.
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