{"id":90926,"date":"2025-10-23T00:42:44","date_gmt":"2025-10-23T04:42:44","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=90926"},"modified":"2025-10-23T00:44:45","modified_gmt":"2025-10-23T04:44:45","slug":"private-markets-poised-for-growth-despite-fundraising-hurdles","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2025\/private-markets-poised-for-growth-despite-fundraising-hurdles.html","title":{"rendered":"Private Markets Poised for Growth despite Fundraising Hurdles"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/res.cloudinary.com\/cais\/image\/upload\/f_auto%2Cc_lfill\/q_auto\/charts\/pe-secondaries-2025-Exhibit_1_gjixxo\" alt=\"https:\/\/res.cloudinary.com\/cais\/image\/upload\/f_auto%2Cc_lfill\/q_auto\/charts\/pe-secondaries-2025-Exhibit_1_gjixxo\"\/><\/figure>\n\n\n\n<p>(HedgeCo.Net) Despite some headwinds, the private markets sector remains a focal point for capital and strategic planning. According to the latest annual survey by McKinsey, the global private markets industry is \u201cbraced for shifting weather\u201d but remains resilient and evolving.\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.mckinsey.com\/industries\/private-capital\/our-insights\/global-private-markets-report?utm_source=chatgpt.com\" target=\"_blank\">McKinsey &amp; Company<\/a><\/p>\n\n\n\n<p><strong>Key findings &amp; nuances<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Fundraising across many asset-classes in 2024 fell to its lowest level since 2016. Traditional closed-end commingled funds, for example, saw year-on-year declines.&nbsp;<a href=\"https:\/\/www.mckinsey.com\/industries\/private-capital\/our-insights\/global-private-markets-report?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">McKinsey &amp; Company<\/a><\/li><li>Yet, despite the fundraising slump,&nbsp;<strong>capital deployment<\/strong>&nbsp;increased across many asset classes, and distributions to investors improved (for the first time since 2015 in the case of private equity).&nbsp;<a href=\"https:\/\/www.mckinsey.com\/industries\/private-capital\/our-insights\/global-private-markets-report?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">McKinsey &amp; Company<\/a><\/li><li>Notably, the structure of private markets is evolving: co-investments, separately managed accounts, open-end vehicles, and retail access are increasing.&nbsp;<a href=\"https:\/\/www.mckinsey.com\/industries\/private-capital\/our-insights\/global-private-markets-report?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">McKinsey &amp; Company<\/a><\/li><\/ul>\n\n\n\n<p><strong>Trends gaining traction<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Private credit<\/strong>&nbsp;as a preferred alternative: With higher interest rates and banks retrenching from certain lending sectors, private credit is attracting more attention.&nbsp;<a href=\"https:\/\/www.invesco.com\/us\/en\/insights\/alternative-opportunities-outlook-update.html?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Invesco<\/a><\/li><li><strong>Infrastructure &amp; real assets<\/strong>: Given inflation concerns and demand for essential-service assets, infrastructure is seen as a resilient anchor in portfolios.&nbsp;<a href=\"https:\/\/www.yieldstreet.com\/top-alternative-investments-trends\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">yieldstreet.com<\/a><\/li><li><strong>Secondaries &amp; GP-stakes<\/strong>: Liquidity in private markets is improving through secondary markets (investing in existing fund stakes) and through LPs investing in private-equity firms themselves (GP stakes).&nbsp;<a href=\"https:\/\/www.mckinsey.com\/industries\/private-capital\/our-insights\/global-private-markets-report?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">McKinsey &amp; Company<\/a><\/li><\/ul>\n\n\n\n<p><strong>Implications for investors<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The \u201cilliquidity premium\u201d remains attractive: investors willing to accept longer-term commitments may access higher potential returns. As one earlier analysis noted, the alternatives industry may grow to over USD 24 trillion by 2028 (from ~USD 15 trillion in 2022) partly because of this.&nbsp;<a href=\"https:\/\/www.kkr.com\/insights\/alternative-perspective-past-present-future?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">KKR<\/a><\/li><li>But the environment is not risk-free: higher financing costs, elevated entry valuations in some sectors, and macro &amp; geopolitical uncertainty all pose headwinds.&nbsp;<a href=\"https:\/\/www.mckinsey.com\/industries\/private-capital\/our-insights\/global-private-markets-report?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">McKinsey &amp; Company<\/a><\/li><li>Due diligence matters more than ever: as \u201cmanager dispersion\u201d increases (i.e., differences in performance across fund managers), choosing the right partners, structures and alignment of interests is key.&nbsp;<a href=\"https:\/\/caia.org\/next-decade?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">CAIA<\/a><\/li><\/ul>\n\n\n\n<p><strong>Bottom line<\/strong><br>While fundraising for private markets may face challenges, the broader momentum remains strong. For savvy investors, private markets continue to offer meaningful opportunity\u2014especially when deployed with care, realistic expectations, and an eye on liquidity and structure.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) Despite some headwinds, the private markets sector remains a focal point for capital and strategic planning. According to the latest annual survey by McKinsey, the global private markets industry is \u201cbraced for shifting weather\u201d but remains resilient and evolving.\u00a0McKinsey [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,16,3,16022,13,15,16029,16286],"tags":[8239],"class_list":["post-90926","post","type-post","status-publish","format-standard","hentry","category-activist-funds","category-hedgeco-networks-press-releases","category-hedgeco-news","category-opinion","category-press-releases","category-private-equity","category-ucits","category-venture-capital","tag-private-markets"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/90926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=90926"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/90926\/revisions"}],"predecessor-version":[{"id":90927,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/90926\/revisions\/90927"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=90926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=90926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=90926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}