Expected favorable alignment in 2025 of private market fundraising, technological disruption, and global economic cycles is fueling optimism that conditions in the upcoming year will prove a boon for private market investments, Schroders said.
The asset manager reports that a favorable private markets fundraising cycle is emerging following a correction, the continued rise of artificial intelligence driving technological innovation, and a global economic shift towards expansion will all serve as tailwinds in the coming year. These dynamics are poised to create attractive entry points, especially in sectors like small and mid-market buyouts, venture capital, and real estate, which have seen corrections, making them ripe for investment.
2025 is also projected to be a standout year for income generation, with private debt and credit alternatives offering compelling returns amid low public market risk premiums. Infrastructure and renewable energy investments, particularly in sectors like data centers powered by AI and clean energy, are expected to benefit from increased demand and regulatory shifts.
Private equity, particularly in small and mid-market buyouts, has shown resilience during past economic downturns, adding to its appeal as a long-term investment strategy. As the energy transition continues, private markets will play a key role in funding renewable energy projects and fostering sustainable growth.
Source: https://www.schroders.com/en-ch/ch/professional/insights/outlook-2025-private-markets/
