Global LPs Stay Bullish on Private Markets

Wellington Investment Management, a titan among global independent investment firms, unveiled a survey at the SuperReturn International conference in Berlin this past June.

The findings, gathered from 165 private market professionals worldwide, signal a wave of optimism about private market prospects, even amidst recent turbulence.

 

Today, we dive into these insights alongside Bain & Company’s 2025 Global Private Equity Mid-Year Report.  

An Impressive 96% of Global LPs Eye Growth or Stability in Private Market Exposure

The Wellington Investment Management Private Investment Survey, conducted during the Berlin gathering, polled representatives from 70 limited partners (LPs), 46 general partners (GPs), 32 service providers, and 17 other entities.

 

The results are clear: 96% of LPs plan to either boost (53%) or hold steady (43%) their private market investments over the next year, with just 4% considering a pullback.  

 

Wellington also explored LPs’ perspectives on blending public and private market strategies.

 

Laura Kirk, Head of Private Investment Fundraising at Wellington, remarked: “It’s heartening to see LPs embrace the fusion of public and private expertise as a powerful tool for delivering client value.”

A solid 51% of LPs believe hybrid approaches can lift portfolio performance, while 63% are open to integrating these strategies.

 

Kalyani Harar, Wellington’s Director of Private Investments, noted: “Last year’s challenges haven’t dimmed LPs’ enthusiasm. They’re actively seeking new opportunities.”

 

Indeed, 45% of respondents highlighted “greater return potential” as a key driver for their private market focus.  

Liquidity Woes Continue to Loom  

Bain & Company’s mid-year report paints a cautious picture, forecasting a slowdown in Q2 investment activity. April saw transaction values slump 24% below the first quarter’s monthly average, with volumes dropping 22%.

 

Exits are feeling the pinch too, particularly through IPOs, where an already tepid market ground to a halt early in Q2, prompting many firms to postpone or scrap listing plans.  

 

LPs are growing frustrated with partial exits or minority stake sales, increasingly favoring traditional full exits despite pushback.

A recent ILPA webinar revealed over 60% of LPs prefer this route, even if it means accepting valuations below recent peaks. With geopolitical tensions, macroeconomic jitters, and cash flow pressures mounting, LPs are seizing control of liquidity—shifting portfolios or tapping secondary markets.

 

For those with flexible capital, this offers a chance to snag bargains. Yet, the secondary market, though growing, remains immature, handling less than 5% of global private equity assets, far short of meeting industry-wide liquidity needs.  

 

As exit pressures hit unsustainable heights, GPs face a crossroads. Some cling to maximizing value, while others are biting the bullet, offloading assets at slightly below target prices to return capital to LPs.  

LPs Embrace Diversification Amid Uncertainty  

In today’s unpredictable macro landscape, LPs are rethinking old strategies, diversifying beyond concentrated holdings by weaving in private equity secondaries and growth assets.

 

This shift not only boosts liquidity but also cushions against interest rate swings through growth-focused investments.  

 

The survey found just 10% of LPs trimmed their private market exposure in the past year. Nearly half (48%)—including LPs, GPs, and service providers—see political uncertainty as the top threat over the next 12 months.

 

In the U.S., a striking 73% of respondents upped their allocations, while Europe (65%) and the Middle East (64%) lead in regional optimism for the year ahead.  

What’s Next on the Horizon?  

Every upheaval breeds winners and losers, and 2025 is no exception—heightened uncertainty often unveils prime opportunities.

 

Take U.S. footwear giant Skechers: trade uncertainties forced it to retract its forecast, sending its stock tumbling 44% from its 2025 high. Within two weeks, 3G Capital swooped in with a $9 billion acquisition, showcasing the speed of value capture in chaos.  

Recent months’ wild swings have muddied mid-year forecasts, but one truth stands out: the global stage has shifted. Brief lulls or recoveries in financial markets can’t hide the deep transformation in global trade and geopolitics.

 

Portfolio companies must rethink their playbooks, as early-year strategic assumptions may already be obsolete.  

 

Yet, 2025’s deal landscape isn’t doomed. Once tariff policies clarify—potentially by August—market rebounds could outpace expectations.

 

Private equity firms that swiftly lock in exits, anticipate market entries, and pinpoint high-potential targets will lead the pack. With turbulence unlikely to ease soon, proactive moves could be the game-changer.  

LPs,Navigate New Terrain  

Amid this storm, LPs are charting bold paths forward. Many are channeling funds into high-growth arenas like technology startups and green energy ventures, diluting risks across single markets.

 

Beyond this, LPs are teaming up with GPs on structured financing, eyeing a 10% capital shift—roughly $15 billion—toward Southeast Asian tech startups by 2026 to optimize returns.  

 

Looking ahead, LPs poised to capitalize on the post-tariff clarity window and align with AI-savvy GPs—such as those backing autonomous driving innovations—could unlock returns above 15%.

 

In summary, the private market still brims with many opportunities.