Dealmaking momentum signals private capital revival
Markets are optimistic now that election uncertainty is gone and US economic conditions are improving amid falling rates. But the path toward a Goldilocks environment for private capital remains uncertain, our latest US Market Insights report explains.
- Asset owners face a distribution drought, squeezing returns and overexposing LPs to private markets. But PE and VC dealmaking picked up in late 2024, raising hopes for renewed exits and fundraising momentum.
- The leveraged loan market has strengthened, and private debt funds hold plenty of dry powder. While competition has compressed credit spreads, elevated base rates have supported total returns.
- Infrastructure investment is surging, especially in digital and energy transition sectors tied to AI growth. Meanwhile, real estate challenges include high office vacancies and new multifamily supply.
The wide-ranging report is our biannual bird’s-eye view of US private markets.
