US PE will remain a magnet for LPs in 2025
An improved outlook for dealmaking, exits and liquidity has LPs excited about the market’s prospects over the next 12 months.
LP excitement over the US private equity market towards the backend of 2024 looks set to continue in the New Year.?
Private Equity International’s LP Perspectives 2025 Study found that 90 percent of LPs have similar or greater interest in North American private markets over the next 12 months compared with the previous year. The percentage was slightly up from 87 percent in last year’s study.??
Allocations tell only part of the story. According to EY estimates, PE deal value will increase 16 percent in 2025 year-on-year, building on a likely 20 percent increase in 2024. This positive sentiment is due in part to an interest rate regime that is “fundamentally positive for private equity”, Damir Ratkovic, head of alternative investments at SEB Life and Pension, tells PEI.
Last month, Martin Longchamps, head of private equity at Caisse de dép?t et placement du Québec (CDPQ) told PEI that...
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