2025 Global Private Markets Outlook

The last two years can be described as a slow-motion liquidity crunch across private markets. Consistently high interest rates created a domino effect on liquidity, effectively freezing portfolios with private investment exposure. In the second half of 2024, this effect began to reverse. Now, the private markets landscape is experiencing major cyclical and structural changes. Together, these turning points could unearth a generational opportunity in private markets allocation for qualified investors.

As the private markets landscape shifts, the investment landscape evolves, creating new opportunities and challenges. This page provides an overview of our pivotal insights, designed to equip strategies for navigating and capitalizing on these changes.

In our latest report, we delve into the four transitions impacting private allocation in 2025. We also explore the broad range of private market capabilities, including private credit, private equity, real estate, and real assets, across the New York Life Investments platform.

Cyclical Turning Point:

• Global Rates are Moving Lower:
  • Central banks are cutting interest rates, boosting investor confidence.
  • U.S. rates are more resistant to hikes, but volatility will persist.

• Deal Flow is Returning:
  • Deal flow and exit activity are increasing.
  • Bid-ask spreads for high-quality assets are reasonable, with signs of improvement for lower-quality assets.
  • The credit crunch in private markets is easing.

Structural Turning Point:

• Investors are Seeking New Opportunities:
  • Institutional allocations to private markets are rising.
  • Public equity concentration is reducing portfolio diversification.
  • Qualified investors are seeking early-stage value creation and 'main street' economic growth.

• Global Megatrends are Shaping the Market:
  • Increased competition and performance dispersion offer opportunities in smaller fund sizes.
  • Global megatrends like supply chain re-globalization, electrification, and digitization are driving capital-intensive investments.
  • Fewer listed companies and higher equity market concentration are pushing investors towards private markets for returns and diversification.

Access Executive Summary

For a concise overview of our key findings, click the link below to access the executive summary.