TLDR:
– Fundraising in private equity and venture capital expected to recover in 2024
– Private credit strategies growing and focusing on high returns
Article Summary:
Acuity Knowledge Partners recently conducted a survey with 128 private markets firms worldwide to gather insights on the outlook for private markets in 2024. The key finding was that fundraising is expected to rebound, with a larger percentage of respondents planning to raise funds compared to the previous survey. Private credit strategies are gaining traction, particularly those that can generate high returns within a short period.
Despite the positive sentiment towards fundraising, the survey highlighted ongoing challenges in capital deployment and returns, with limited investment and exit opportunities remaining a top concern for many respondents. Outsourcing is seen as a valuable solution for operational efficiency, with a majority of private-market firms considering outsourcing for portfolio monitoring and deal-related activities.
The survey also revealed that economic conditions and interest rates are crucial factors influencing valuations and fundraising in 2024, with a focus on diversification in emerging markets. Tech sectors are attracting investor attention, while fintech seems to be losing steam. Leadership roles at firms were predominantly represented in the survey, with experienced professionals preparing responses based on industry knowledge.
Overall, the survey provides insights into the increasing confidence in fundraising for private equity and venture capital, despite existing challenges and the shifting landscape of the industry.
