Despite market turbulence, general partners (GPs) are eyeing new funds, tech upgrades and broader investment geographies, according to alternative investments software provider Dynamo Software’s report.
The report identified five key areas shaping GP strategies in the year ahead: fundraising, technology, geographical diversification, market volatility management and AI adoption. It was conducted in March and April based on a survey of 80 private equity, venture capital and hedge fund GPs.
73% of respondents said they plan to raise at least one new fund in 2025, with 40% anticipating even greater activity than in 2024. However, fundraising in challenging market conditions topped the list of business concerns, followed by deal activity and longer holding periods. While only 4% expect a significant slowdown, the path forward is far from frictionless.
Global diversification —particularly into Asia— is high on the agenda. GPs planning to deploy capital into the region rose to 30%, up 22 percentage points year-over-year. That spike reflects not just geopolitical repositioning but also optimism about Asia’s tech ecosystem and corporate governance reforms, particularly in Japan. As the report highlighted, “geopolitical conflicts” and “global trade tensions” remain top-of-mind among hedge fund participants surveyed previously.
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About 73% of respondents plan to boost technology budgets in 2025, up from 50% a year earlier. Tools for “deal sourcing and relationship tracking,” “fundraising and marketing automation,” and “data security” were top priorities. Importantly, GPs want user-friendly platforms that integrate easily and drive team efficiency.
“It’s both fascinating and encouraging to see the emphasis on employee-centric outcomes when GPs are thinking about their technology capabilities,” said Dynamo Software CEO Hank Boughner. “Even as the alternatives space grows in its digital maturity, it remains a human-to-human business where technology is ultimately evaluated by how well it advances GP ingenuity and investor trust.”
Risk management and due diligence are now seen as the most pressing business impacts of the global economy, according to the research. GPs are also expanding their investor base: 65% are actively marketing to retail and high-net-worth individuals, reflecting a strategic shift to build resilience and unlock new growth.
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While a majority of GPs named AI-powered decision tools as a key priority, actual integration of AI features ranked lowest among desired tech functionalities. This suggests a readiness gap, according to the researchers.
“AI and machine learning features that empower teams are most likely to find purchase with GPs,” Boughner added. “Fintechs adding AI to their platforms would do well to focus on tangible improvements in day-to-day workflows over flashy marketing.”
