Recently, McKinsey released the "Global Private Markets Report 2025" with the subtitle "Private equity emerging from the fog" .
I have selected several key points from the report to make it more convenient for you to read and refer to.#privatemarket
- In 2024, the transaction scale of the global private equity market rebounded significantly, yet it continued to decline in the Asian region. Asia was also the only regional market in 2024 where the assets under management (AUM) of private equity funds kept decreasing.
- Although the fundraising of global private equity funds remained sluggish in 2024, with the total fundraising amount dropping for the third consecutive year, McKinsey's research findings show that many limited partners (LPs) intend to increase their private equity (PE) allocation in the coming year. And the data results considering a long-term period indicate that PE can outperform the public market.
- From the perspective of investment, despite the decline in fundraising, institutions are still actively making investment arrangements. In terms of industries, technology, consumer goods, and financial services remain investment hotspots, with frequent large-value transactions. The popularity of privatization transactions has also rebounde
- From the perspective of exits, the exit pressure on institutions is still enormous. However, it is gratifying that in the first half of 2024, the capital distribution amount of private equity funds exceeded the capital call amount, marking an official reversal in nearly a decade. In terms of exit methods, initial public offerings (IPOs) are still not the main exit approach (accounting for only 5% in quantity), mergers and acquisitions (M&A) exits still dominate (accounting for 50% in quantity), and "sponsor-to-sponsor exits" among PE institutions are relatively more active, with the proportion reaching a ten-year high.
- Measured by multiple indicators (macroeconomy, general partner (GP) side, limited partner (LP) side), the "prosperity degree" of the global private equity market has recovered. However, it may still take some time for the private equity market in the Asian region to welcome its "spring".
