Private Capital Outlook 2025: Key insights from INREV North America
After a week of discussions at the INREV North America conference and meetings across New York, one message came through clearly: the market is scanning the horizon for certainty amid a still-shifting environment.
Contributors
From tentative fundraising to evolving allocation strategies, both managers and investors are reassessing their next moves. While there is cautious optimism that greater stability may return later in 2025, macroeconomic pressures continue to weigh on decision-making across the private capital landscape.
Key takeaways:
- Transactions remain constrained
Delayed capital distributions and slower asset disposals continue to limit market activity. In response, managers are exploring adjacent verticals in pursuit of more reliable returns. - Fundraising is tentative
Although many managers are preparing to re-enter the market in late 2025, many expect momentum to remain slow. Some GPs are closely monitoring whether real estate may lose share to infrastructure, particularly as European defence and energy themes gain traction. - Geographic allocations are under scrutiny
GPs are concerned that investors may be cautious about increasing their US exposure in the near term. Albeit, with the US already forming a very significant component of many LPs portfolios, that is not expected to be a permanent shift. - Scale continues to dominate
The US remains the structural powerhouse of global private capital, with unmatched depth, deal flow and manager concentration. This continues to shape sentiment and strategy across markets.
Whether today’s caution signals a brief pause or a longer recalibration remains to be seen. But amid macro uncertainty, one constant remains: the long-term nature of illiquid assets continues to offer resilience and the potential for recovery.
Langham Hall remains committed to supporting managers and investors with clarity, insight and operational confidence as the cycle evolves.
