A new report from S&P Global Market Intelligence reveals that the private equity and venture capital industries are showing optimism for 2025 despite lingering macroeconomic concerns.
According to the annual survey, 71% of general partners (GPs) are more optimistic about the private equity deal environment than they were a year ago, with 67% of venture capital GPs sharing a similar outlook. Limited partners (LPs) are particularly bullish on private equity returns in 2025, with 52% highlighting PE as the single asset class likely to provide the largest returns this year, up from 39% a year ago.
“While the macroeconomic landscape presents challenges, the overall sentiment within the private equity and venture capital sectors is one of cautious optimism,” said Dylan Thomas, lead author for the report. “In addition, expanding into the retail channel is a focus for both private equity and venture capital firms, with more than two-thirds of surveyed GPs either currently offering or considering access to retail investors.”
The survey also found that generative AI technology is expected to play an increasing role across investment workflows, with 31% of respondents citing due diligence as the area where AI will be most helpful, followed by valuation analysis (23%) and deal sourcing (22%).
However, the report highlights several challenges facing the industry. A significant share of GPs (46% for private equity and 40% for venture capital) identified the macroeconomic environment, including factors such as interest rates and inflation, as the primary influence on private markets deal activity in 2025. Additionally, 56% of LPs think portfolio company valuations are too high and due for an adjustment, and 73% believe higher-for-longer interest rates will be a drag on future private equity returns.
The survey, which was conducted between November 2024 and January 2025, included more than 100 global respondents across North America, Latin America, Asia Pacific, Middle Eastern and African regions.
