Fund administration provider Gen II Fund Services has released its latest Core Alternative Managers’ Mood Index (Cammi) report, which showed confidence in private capital markets heading into 2025.
According to the report based on a pan-European survey from over 120 managers across private market asset classes, 40% of fund managers expect investors to increase their allocations to private capital next year, while 33% anticipate allocations will remain steady. However, 27% foresee a reduction in exposure.
The optimism is reflected in the overall Cammi score, which has rebounded to 56.61 from 42.37 last year. The Cammi index tracks allocation trends in private equity, real assets, and private credit, summarizing fund managers’ views on whether allocations are increasing, decreasing, or unchanged. Its purpose is to gauge current and future sentiment toward asset and sub-asset classes.
The headline Cammi, ranging from 0 to 100, reflects these trends: a reading above 50 signals an increase in allocations, below 50 indicates a decrease, and 50 denotes no change. The farther the number is from 50, the greater the change in sentiment.
Venture capital has emerged as a standout area of interest, with a Cammi score of 59.05. Alex Di Santo, head of private equity, Europe, at Gen II, highlighted the growing appeal of this sector: “With steady demand from institutional investors for early-stage, innovation-driven investments, especially around themes like technology, health, and energy, good market opportunities are returning. Consequently, this score is also a vote of confidence from these fund managers that the fundraising environment in 2025 will be easier than in 2024.”
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Private equity remains positive overall, although traditional strategies such as buyouts are experiencing a slight slowdown, with a Cammi score of 55.19. Fund managers noted increased competition and consolidation among larger players, leading to a more measured pace of fundraising. Meanwhile, secondaries are seeing cautious optimism, supported by technological innovations like tokenisation, which could transform market accessibility.
Real assets are also gaining traction, with a Cammi score of 58.87. The report underscores strong momentum in the residential sector, driven by urbanization, rising rents, and supportive government policies. Many fund managers are diversifying into resilient and high-growth sectors to adapt to shifting market dynamics and manage risks.
Private credit, which has faced a challenging environment recently, showed signs of cautious growth with a Cammi score of 55.83. Managers are carefully navigating the evolving credit landscape to capitalise on emerging opportunities, said the researchers.
Cybersecurity has become the second most important topic in investor due diligence, reflecting rising concerns over digital threats, according to the report. Additionally, tokenisation in the secondaries market is gaining traction, offering the potential to transform how private market assets are traded and accessed.
