Market Enthusiasts Spot Rising Optimism: Signs of Improvement Ahead!
LONDON, Dec. 11, 2024 — Exciting news is on the horizon! The global powerhouse in alternative assets insights has just unveiled its latest findings in the Preqin Global Reports 2025. This year’s six reports dive deep into the captivating world of alternative investments including private equity, venture capital, private debt, hedge funds, real estate, and infrastructure.
The insights from these Global Reports are a goldmine, crafted by Preqin’s seasoned experts who analyze fundraising trends, fund managers, assets under management (AUM), deal performances, and investor appetite based on a comprehensive survey from November 2024 involving 255 participants.
By blending qualitative and quantitative data, Preqin analysts are set to illuminate the critical trends shaping alternative assets. Get ready to equip yourself with the knowledge needed to seize upcoming opportunities and navigate the challenges ahead!
Cameron Joyce, Senior Vice President and Global Head of Research Insights, notes, “The macroeconomic environment has been surprisingly resilient, showcasing minimal signs of stress across financial markets. As policy rates start to ease, optimism is on the rise regarding the future of private capital. We expect a rejuvenated deal-making landscape in 2025, which will undoubtedly elevate overall market activity.”
Key takeaways from this year’s reports include:
1. Investors and fund managers are feeling bullish about private equity in 2025:
By Q3 2024, global private equity fundraising surged to a remarkable $482 billion across 646 funds, driven largely by increased enthusiasm from a diverse array of investors, particularly non-institutional players like family offices and wealth managers.
2. Venture capital AUM ($3.1 trillion) sees a slowdown, but expectations for exits are on the rise for 2025:
As of Q1 2024, global venture capital AUM dipped slightly to $3.1 trillion, with the Asia-Pacific region leading at $1.6 trillion, followed by North America at $1.1 trillion. In Q3 2024, venture capital exits totaled 852, valued at $112 billion, marking a continuation of the downward trend from the previous year.
3. Private debt investors adopt a more cautious stance in 2024:
Despite a solid rebound in private debt fundraising after a sluggish start in Q1 2024, the environment remains challenging. Investors are adjusting their strategies, resulting in a shift in the dynamics between fund managers and investors regarding fees.
4. Hedge funds shine with a 10% return globally in 2024, highlighting their diversification benefits:
Preqin’s All Hedge Fund Index reported a 10% return in 2024 through Q3, translating to a 14% compound annualized growth rate. Additionally, hedge funds attracted $25.5 billion in inflows during Q3 2024, although net outflows have been a persistent issue over the last decade.
5. Signs of recovery in the global real estate deal market in 2024:
The aggregate transaction value in the North American, European, and APAC real estate markets bounced back in the first three quarters of 2024 compared to the same period the previous year. However, the total capital raised saw a slight moderation, hitting $96 billion, which is 61% of last year’s figure.
6. Infrastructure dry powder at a historic low of 24% of AUM in 2024:
Both fundraising and deal-making in infrastructure have been lackluster in 2024, leading to a record low in dry powder levels, dropping from 35% at the end of 2020 to just 24% in early 2024.
For further details, connect with Mimi Celeste Taylor at [email protected].
The insights from the 2025 Preqin Global Reports are accessible exclusively to Preqin Insights+ subscribers.
If you’re a member of the press, don’t hesitate to reach out to obtain full copies of reports covering private equity, venture capital, private debt, hedge funds, real estate, and infrastructure.
Notes to Editors
* Preqin updated its AUM methodology in September 2024. For more information on this update, feel free to reach out. Funds denominated in Yuan Renminbi are included in these figures, with APAC emerging as the largest region by AUM since 2016, previously led by North America.
** The latest available data indicates a six-month lag in Preqin’s AUM analysis, ensuring a comprehensive dataset for accurate value calculations.
About Preqin
Preqin, known as the Home of Alternatives™, empowers finance professionals navigating the world of alternative investments with vital data and insights. For over 20 years, they’ve led the charge in gathering private data, aiding over 200,000 professionals in optimizing their capital raising, deal sourcing, performance analysis, and staying informed on market trends. For more information, visit www.preqin.com.
