Private markets fundraising is set to bounce back in 2025, with private debt and growth equity at the forefront as investors look to diversify, according to a study.
CSC, a provider of business administration and compliance solutions, surveyed 300 general partners (GPs) and 200 limited partners (LPs) across North America, Europe (including the UK), and Asia-Pacific (Apac) to gauge their outlook on private capital markets.
Among the key takeaways, 57% of GPs identified private debt as a top investment focus, with 81% expecting investor demand for the asset class to grow over the next two years. Meanwhile, diversification emerged a central theme, with growth equity (66%), venture capital (53%) and real estate (51%) emerging as the most attractive new asset classes for fund managers.
GPs are bullish on growth equity, according to the findings, with 84% predicting a surge in LP demand over the next 24 months.
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Marshall Saffer, managing director of funds and capital markets at CSC, commented: “Persistent higher interest rates have made leveraged buyouts more expensive, prompting many GPs to shift towards growth equity as a preferred investment strategy. This trend is particularly visible in the Asia Pacific, where 72% of GPs are considering launching funds in this space.”
In terms of geographic expansion, North America remains the leading growth market, with 52% of GPs targeting the region. However, Asia (49%) has now surpassed Europe (45%) as the second most attractive market for fund launches, signalling a shift in global capital allocation strategies.
Agnes Chen, regional managing director of Apac at CSC, added: “Apac’s rising appeal is a testament to growing investor confidence in the region, marking a shift from previous years. With improving fundraising conditions and a clear move toward diversification, private markets are poised for a dynamic and opportunity-filled 2025. We are seeing robust interest across asset classes and geographies, underscoring the resilience and adaptability of private market investors.”
