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Laxman Pai, Opalesque Asia: More than seven in 10 GPs (73%) plan to raise at least one new private equity, venture capital, or hedge fund in 2025, an indicator of high market confidence, said a market report.
In terms of overall fundraising activity, 40% expect their efforts will ramp up even more than 2024, according to the report by Dynamo Software, based on insights from 80 General Partners (GPs) across diverse geographies and asset classes.
Although 26% admitted that economic uncertainty made it too hard to project, just 4% expected their firms' fundraising to slow down significantly.
As per the report, GPs are under no illusion that fundraising in 2025 will be easy. This year's respondents revealed the tension between their ambitions and market realities, naming "Fundraising in current market conditions" as their top business challenge. "Deal activity" and "Increased holding periods" were second and third, respectively.
The percentage of GPs planning to invest in the Asian market surged more than 22 points to 30% year over year, reflecting the region's growing appeal.
While survey responses were collected before China's reaction to recent U.S. tariffs, it's likely many GPs were already factoring in the potential for geopolitical tension. Hedge fund participants who participated in a May 2024 Dynamo Frontline Insight report certainly were.
A significant percentage of those GP respondents cited geopolitical conflicts (63%) and global trade tensio...................... To view our full article Click here
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