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The source for navigating the world of alternative investments
What’s in Store for 2025: An Upbeat Private Equity Market
The most recent iCapital flow-of-funds data sheds unique light on the improving sentiment now favoring private equity. In the third quarter of 2024, 46% of net new subscription flows through the iCapital platform were allocated to private equity. This is the highest quarterly level we’ve seen in over a year, and above the three-year average of 38%.
This heightened investor appetite for private equity investments mirrors the recovery in private equity deal value, which is on pace for 20+% growth in 2024.1 It’s becoming clearer that a pro-growth environment and improving financing conditions – coupled with investor demand – are promising signs for private equity and the capital markets in 2025.
To see what may lie ahead, take a look at our 2025 Market Outlook, or contact our sales team at [email protected], and visit the iCapital Marketplace.
Dan Vene
Co-Founder and Managing Partner,
Co-Head of iCapital Solutions
CHART OF THE MONTH
NEW FROM iCAPITAL
Podcast Series: Investing with an Evergreen Lens
Explore private market investment strategies with Investing with an Evergreen Lens, a new podcast that delves into evergreen fund structures. Hosted by Michael Sidgmore, Founder of the Alt Goes Mainstream podcast, and Nick Veronis, Co-Founder and Managing Partner of iCapital, this series features exclusive insights from industry leaders on the evolution of evergreen investment structures and the opportunities they present for wealth advisers and fund managers.
2025 MARKET OUTLOOK
Solid Underpinnings and Plenty of Wild Cards
The U.S. economy should see solid underpinnings in 2025, supported by a steady U.S. consumer and easing inflation. With trend GDP growth expected, we see several factors that could further support the U.S. as well as the global economy in the new year. However, a number of key wild cards, more so than in years past, will determine the trajectory of the economy and financial markets.
BEYOND 60/40
2025 Market Outlook, Private Credit, and AI tools
Anastasia Amoroso sits down with Amanda Lynam, BlackRock’s Managing Director and Head of Macro Credit Research, to discuss the booming private credit market. Then, iCapital’s Chief Data Officer Robert Huntsman explores how AI is transforming investment management.
MONTHLY MARKET ROUNDUP
Apollo believes Investment Grade Private Credit is a growing part of the credit market that has the potential to generate attractive risk-adjusted returns but has been overlooked because it doesn’t fit neatly into the current asset allocation framework. Read more in their recent white paper.
In Oaktree’s latest Performing Credit Quarterly, Armen Panossian (Co-CEO and Head of Performing Credit) and Danielle Poli (Assistant Portfolio Manager, Global Credit) explore the next frontier of private credit: asset-backed finance. They discuss how major regulatory changes are causing traditional lenders to retrench from the space, leaving a significant financing void. They also look at several other trends affecting credit markets, including the first Fed cut of the cycle, the return of M&A and LBO activity, and the rise of PIK within private credit.
As public markets continue to reach all-time highs, managing a client’s tax liability when harvesting gains can be an important part of supporting their overall financial goals. Read about how Opportunity Zone investing has the potential to be a valuable tool in your solutions kit for clients.
IN CASE YOU MISSED IT
Beyond 60/40: Highlights from 2024
As we wrap up a fast-paced year, see highlights from 2024 with Anastasia Amoroso, Chief Investment Strategist at iCapital, and established names from Blackstone, Morgan Stanley, Morningstar, and more–plus what you can expect from another year of Beyond 60/40 in 2025. You won’t want to miss what’s next!
IMPORTANT INFORMATION
1. Source: S&P Global Market Intelligence
The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital Network”) or one of its affiliates (iCapital Network together with its affiliates, “iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax, and legal advisors to understand the implications of any investment specific to your personal financial situation.
ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.
iCapital Markets LLC operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital Markets LLC generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market, or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third-party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.
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