Private Markets 2025 Outlook: Resurgence in Deal Activity and Liquidity (Adams Street Partners)

Summary

• PitchBook forecasts US private equity exit value to reach $396 billion in 2024, exceeding pre-Covid levels.p.4
• US private equity managers hold an eight-year inventory of companies at current exit pace.p.4
• Venture capital deal activity is on pace to reach $175.2 billion in 2024.p.5
• Venture capital fundraising in 2024 is on track to narrowly exceed the $86.3 billion total from 2023.p.5
• Adams Street Partners manages $61 billion in assets under management across multiple private market strategies.p.10

Key insights

1. Private markets expected to see a broad resurgence in deal activity and exit liquidity in 2025.p.3
2. Lower interest rates and robust credit markets are decreasing the cost of capital for buyout acquisitions.p.4
3. Early stage AI-native companies are anticipated to continue raising significant capital over the next 12 months.p.5
4. Venture growth investments are set to experience a major surge focused on generative AI use cases in 2025.p.6
5. Secondaries are increasingly utilized by LPs and GPs as a permanent portfolio management and liquidity tool.p.7
6. The core middle market in private credit provides attractive opportunities due to higher yields, conservative capital structures, and better creditor protections.p.8
7. A narrowing bid/ask spread and stabilizing interest rates are projected to support co-investment deal activity.p.9