Report
min read
Insights 2025 – View on Private Equity
In Insights 2025, we explore the key trends shaping investment decisions in the year ahead. In this chapter, our team shares their perspective on the evolving landscape in Private Equity.
Summary
- Private Equity rebounded in 2024, with improving deal flow and exit activity. However, persistently high interest rates and muted multiple expansion are reshaping return drivers, placing greater emphasis on operational value creation over financial engineering.
- We see the most attractive opportunities in lower middle market buyouts, sector specialists, and complex situations, where sourcing advantages and earnings growth remain underappreciated. Large-cap strategies, while stable, face structural headwinds.
- Fundraising continues to concentrate in mega-funds, creating opportunities to access high-performing emerging managers. With exit markets normalising and record dry powder, we believe manager selection and value-add capabilities will be key to outperformance in 2025.