Institutional investors committed $64.3 billion across private markets in Q2 2025, according to the newly released Dakota Public Pension Allocations Report. The quarterly surge, up 22% from Q1, signals increased demand for private equity, credit, real assets, hedge funds, and early-stage venture, as allocators optimize for liquidity, income generation, and a more concentrated manager roster.
The report provides a detailed asset class breakdown of capital flows, highlighting key trends in allocator behavior and manager selection.Powered by Dakota’s in-house research team, this analysis is designed to help fundraising and investment professionals stay ahead of market momentum.
Key Highlights from the Q2 Report:
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Private Equity: $26.3B committed, led by middle-market and large-cap buyouts, growth equity, and continuation vehicles
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Private Credit: $14.8B deployed across opportunistic, senior-secured, and distressed strategies
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Real Assets: $15.9B allocated to digital infrastructure, real estate debt, and core/core+ platforms
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Hedge Funds: Allocations jumped 378% QoQ, driven by large commitments to diversified liquid alternatives like long/short equity.
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Venture Capital: $2B focused on early-stage AI, cybersecurity, and biotech
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LP Spotlight: Virginia Retirement System, CPP Investments, WSIB, and CalPERS among featured allocators
“Institutional investors continued to lean into private markets in Q2, allocating across a broad range of strategies,” said Chris LeRoy, Director of Research at Dakota. “As the denominator effect eased, allocators gained flexibility to deploy capital into strategies offering long-term returns, durability, and diversification—particularly in buyouts, credit, and real assets. Private markets remain a critical component of portfolio construction, and even as the landscape evolves, consistent pacing and vintage year diversification remain essential to achieving long-term objectives.”
Download the full Q2 2025 Allocations Report here!
About Dakota
Dakota is a financial, software, data and media company based in Philadelphia, PA. Dakota’s flagship product, Dakota Marketplace, is a database of LPs, GPs, Private Companies and Public Companies used by fundraising teams deal sourcing teams to both raise money as well source investment opportunities. Over 1,300 global investment firms use Dakota daily.
