Private markets fund managers are entering a six to twelve month window for new fund launches, as investor appetite remains strong despite macroeconomic headwinds, according to the Core Alternative Managers’ Mood Index (Cammi).
Cammi, published by Gen II, a private capital fund administrator for managers and investors, is an index of the prevailing direction of allocation sentiment in private equity, real assets and private credit.
The Q2 Cammi score of 56.48, based on responses from over 110 private markets fund managers across the UK and Europe, indicated optimism in investor allocations to private equity, private credit, venture capital and real assets. A score above 50 reflects expectations of increased allocations, signalling expansion rather than contraction in the market outlook.
Cammi data showed that 74% of private market funds closed within 12 months, with 13% doing so in under six months. Managers that move quickly are likely to benefit from this momentum, avoiding the extended 12–18-month timelines that 23% of funds experienced.
Nearly 71% of fund managers expect investors to either increase (40%) or maintain (31%) their private markets exposure. Growth capital (52%) and venture capital (45%) appear to be well-positioned with strong allocation expectations, while real assets (41%) and private credit (37%) also remain in demand.
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Despite the positive sentiment, fund managers are bracing for potential headwinds, according to the report. Political risk was flagged by 33% of respondents, while 25% cited recession concerns. However, a potential downturn is not anticipated until late 2025 or early 2026, according to the findings. This lag gives managers a near-term window to secure commitments before risk aversion increases, shared the researchers.
Nearly 64% of managers shared that they plan to launch private credit funds, reflecting both investor demand and an effort to lock in yield before further macro shifts. Private market data provider Preqin forecasts the private credit market to grow to $2.64 trillion by 2029, with an expected internal rate of return of 12%.
Cammi’s findings also showed that 61% of funds closed within 6–12 months, reinforcing that ” hesitation now could mean losing ground to faster-moving competitors”.
Alex Di Santo, head of private equity, Europe at Gen II, commented: “The Cammi data presents an unambiguous call to action: with 71% of LPs maintaining or increasing allocations, 74% of funds closing within 12 months, and Growth Capital leading our charts for expectations of further investor allocation, this is the decisive moment for fund launches. We’re seeing accelerated fundraising timelines because they recognise what the numbers show: waiting until late 2025 risks colliding with recessionary headwinds while missing today’s optimal conditions. The message to fund managers is: if you’re not in the market within six months, you’ll be fundraising when others are already deploying capital.”
