Looking at 2025, macroeconomic shifts and evolving investment strategies are reshaping the outlook for private markets.
The Trump administration’s policies, such as potential tax cuts and regulatory changes, are likely to influence unlisted assets, notably in sectors such as energy and manufacturing. Overall, we expect private markets to offer diverse opportunities throughout the year, yet selectivity remains essential for navigating potential risks and seizing emerging trends.
Private equity is set for a resurgence following challenging years since the Covid-19 pandemic. Increased M&A activity and expanding opportunities in venture capital – particularly in the AI and biotech sectors – are driving renewed momentum. With interest rates expected to stabilise in 2025, the year presents a promising entry point for investors while the growing mainstream adoption of secondary and liquidity solutions is providing them with greater flexibility and enhanced growth potential.
Meanwhile, the private credit market remains robust, with direct lending offering attractive returns driven by a solid spread pick-up over equivalent liquid investments. Asset-based financing is gaining prominence as a key diversification tool, providing stability through collateral-backed loans; this suggests that momentum in the asset class is set to continue in the coming year on the back of rising demand for lending solutions.
On the real assets front, niche segments, such as logistics and hospitality in southern Europe, show significant promise within the real estate segment. At the same time, the conversion of office space into residential units, driven by shifting work models, is creating compelling opportunities backed by strong macroeconomic tailwinds. Infrastructure investments are also gaining momentum, fuelled by the energy transition and the growing demand for digital infrastructure.
Read our Private Markets Outlook 2025
