McKinsey provides an in-depth analysis of the private markets landscape in 2024. The report highlights a year of mixed outcomes, with fundraising reaching its lowest level since 2016, yet capital deployment experiencing double-digit growth across asset classes. Despite macroeconomic challenges, investor confidence in private markets remains robust, with many planning to increase allocations in the coming year.
Global Private Markets Report 2025: Private equity emerging from the fog
McKinsey & Company
Research
27 Pages
Key Takeaways
Increased Capital Deployment: Despite fundraising challenges, capital deployment grew by double digits across asset classes, indicating managers' adaptability to higher interest rates and a shifting economic landscape.
Resilience in Private Equity: Private equity began to recover from previous downturns, with distributions to limited partners exceeding capital contributions for the first time since 2015, and a rebound in large deal activities.
Emergence of New Investment Vehicles: Fundraisers are exploring alternatives to traditional closed-end funds, such as evergreen funds, to attract and retain capital in a competitive environment.
Limited Partners' Active Engagement: Limited partners are increasingly investing directly in general partners and participating in secondary markets, reflecting a shift from passive allocation to active involvement.
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