In 2023, the private markets faced challenges in fundraising and performance amidst macroeconomic uncertainties. While overall fundraising declined globally by 22%, certain strategies like private equity buyouts saw record fundraising. Larger funds attracted more capital, concentrating fundraising efforts.
Real estate struggled with declining deal volume and negative returns, while private debt remained resilient. Diverging trajectories were observed in private equity, with buyout funds performing well while venture capital faced challenges. Infrastructure fundraising declined, but optimism remains for its future. Efforts to improve diversity and inclusion in the industry continued, albeit gradually.
The emergence of artificial intelligence as a transformative tool generated excitement, promising to revolutionize various aspects of investment management. Overall, 2023 presented a complex landscape for private markets, marked by fundraising pressures, performance disparities, and efforts to adapt to evolving market dynamics and technological advancements.
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