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Bailey McCann, Opalesque New York: Private equity GPs are cautiously optimistic about their prospects for 2025 according to a new survey from Alix Partners and IPEM.
51% of GPs now expect a better global business environment in 2025,
up from 44% at the start of 2024. However, just 38% of GPs see
conditions improving in Europe this year, possibly reflecting a broader
economic decoupling. US-based GPs who responded to the survey said they expected a pro-business stance from the incoming Trump administration, which could support deal activity over the next year. European GPs, however, were worried about the potential for external threats including trade wars and geopolitical uncertainty potentially limiting deal activity on the continent in 2025.
An
overwhelming majority of GPs-85%-see this year as a good time for
dealmaking and capital deployment, possibly assisted by improving
valuations. Fewer GPs see high valuations as a risk in 2025, with most
firms seeing an improvement in the attractive investment opportunities in
the market.
A majority of GPs who responded to the survey expect fundraising to pick up. Opinions on the trading conditions vary depending on fund size. Smaller
mid-market funds are more likely to say this will be a tough year for
fundraising, possibly a result of increased competition from large funds
which are more positive here.
Private debt, infrastructure, and real estate funds are more positive than
other private capital strategies on th...................... To view our full article Click here
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