Private market fundraising is set for a strong rebound through 2025, with general partners (GPs) concentrating on private debt and growth equity to meet rising investor demand for diversification. A new CSC study shows that 81% of GPs expect continued momentum in private debt, while 84% foresee a fundraising surge in growth equity. CSC surveyed 300 GPs and 200 limited partners (LPs) across North America, Europe, the UK, and Asia Pacific. The results reflect a decisive shift in strategy as firms navigate persistent high interest rates and developing macroeconomic conditions. GPs are increasingly turning to sectors that combine resilience with long-term value creation. Furthermore, growth equity, selected by 66% of respondents, led as the top asset class targeted for expansion, followed by venture capital at 53% and real estate at 51%. This continued push toward diversification builds on trends identified in CSC’s earlier Future Private Capital CFO research.
Growth equity has gained significant traction, particularly in Asia Pacific, where 72% of GPs are considering new fund launches. According to Marshall Saffer, Managing Director of Funds and Capital Markets at CSC, elevated borrowing costs have made leveraged buyouts less attractive, prompting a pivot toward equity-driven investment models. North America remains the primary growth focus, with 52% of GPs planning expansion in the region. Additionally, Asia has now surpassed Europe as the second most favored destination, underlining shifting investor confidence across global markets. Agnes Chen, regional managing director, APAC, CSC, adds: “APAC’s rising appeal is a testament to growing investor confidence in the region, marking a shift from previous years. With improving fundraising conditions and a clear move toward diversification, private markets are poised for a dynamic and opportunity-filled 2025. We are seeing robust interest across asset classes and geographies, underscoring the resilience and adaptability of private market investors.”
