Preqin’s Latest Global Reports Spotlight Key Private Markets Trends From 2025 And Beyond

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

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Key Terms

private credit financial

Private credit is a form of borrowing where companies or organizations obtain loans directly from private lenders rather than traditional banks or financial markets. It often involves customized financing arrangements that are not traded publicly, making it a way for businesses to access funding outside of standard channels. For investors, private credit offers the potential for higher returns, but typically comes with increased risk and less liquidity compared to more conventional investments.

direct lending financial

Direct lending is when investors or investment funds lend money straight to companies instead of those companies borrowing from traditional banks. It matters to investors because it can offer higher interest income than public bonds or bank deposits, much like lending money to a neighbor for a premium, but it also carries greater credit risk and lower liquidity since the loans are often private and harder to sell.

distressed financial

Distressed describes a company, debt or asset that is struggling financially and at significant risk of failing to meet obligations such as paying bills, interest or suppliers. For investors it signals higher risk but also potential opportunity: prices may be depressed like a damaged house being sold cheaply, and outcomes can range from a turnaround through restructuring to default or forced sale, so careful assessment of recovery prospects and legal claims matters.

special situations financial

Special situations are unusual, often one-time events that significantly change a company’s value or structure—examples include mergers, asset sales, major lawsuits, bankruptcy filings or unexpected leadership changes. Investors care because these events can create sharp mispricings and fast gains or losses, like spotting a house being renovated that might suddenly be worth much more or less; they require careful, case-by-case judgment about timing and risk.

asset-backed lending financial

Asset-backed lending is a loan that is secured by specific assets—such as inventory, accounts receivable, equipment or real estate—so the lender can seize or sell those assets if the borrower can’t repay. For investors, this matters because the presence and quality of collateral reduce credit risk, influence the borrower’s interest rate and borrowing capacity, and affect how quickly lenders can recover money in a default; think of it like pawning a valuable item to get a loan.

exit activity financial

Exit activity is the set of ways investors or owners turn an ownership stake in a company into cash, such as a sale to another firm, a public stock offering, a private buyout, or liquidation. It matters to investors because it creates a real return and liquidity—like selling a house to realize its value—so the amount, timing and type of exit determine how much and how quickly investors get paid back.

Investor Sentiment Index financial

A metric that summarizes how optimistic or pessimistic investors are about the market or a specific asset, typically calculated from surveys, trading behavior, or patterns in price and volume. It matters because collective mood can push prices higher or lower independent of fundamentals; like a crowd's mood steering traffic, shifts in the index help investors assess short-term risk, potential momentum, and when sentiment-driven buying or selling may affect valuations.

fundraising financial

Fundraising is the process a company uses to obtain money it needs to operate or grow, whether by selling ownership stakes, borrowing, or securing grants. It matters to investors because it determines how much cash a business has to pursue opportunities, how ownership and control may change, and how risky or valuable the investment becomes — like topping up a car’s fuel tank or choosing a loan to pay for a home renovation.

12/17/2025 - 07:00 AM

Key themes included the rise of global infrastructure fundraising and heightened investor conviction toward private credit allocations

LONDON--(BUSINESS WIRE)-- Preqin, a part of BlackRock, released the latest editions of its Global report series, offering exclusive data and market intelligence across Private Equity, Private Credit, Infrastructure, Real Estate, and Venture Capital. These reports consolidate Preqin’s most impactful research from the year, highlighting key trends from 2025 in addition to forward-looking analysis and predictions for each private markets asset class, making them a recognized resource for industry insights.

This year’s reports deliver sharp, data-driven perspectives with the goal of empowering private market participants with the clarity and confidence to seize opportunities and navigate challenges—including market volatility, regulatory shifts, fundraising headwinds, valuation uncertainty, and evolving investor demands.

Key Takeaways Across Private Markets

Private Equity: Secondaries Fundraising Surge With Liquidity In Focus
Global private equity fundraising reached $507bn in Q1–Q3 2025 (73% of 2024’s total), with secondaries funds accounting for 15% of fundraising—nearly double the five-year average—as more investors look for solutions offering liquidity and the potential for discounted, return-enhancing opportunities.
Private Credit: Europe’s Share Jumps as Direct Lending Leads
Funds targeting Europe captured 46% of fundraising in Q1–Q3 2025, up from 23% in 2024. Direct lending dominated with 61.5% of capital raised. Distressed and special situations strategies gained momentum, signaling increasing interest toward higher-yield opportunities.
Infrastructure: Mega-Funds Drive Record Fundraising
Aggregate capital raised surged 70% year-on-year in Q1–Q3 2025, making it the only asset class to surpass the full-year 2024 total in this period. The asset class has delivered annualized returns of between 9% and 11% over one-, three-, and five-years ending June 2025, emerging as a top performer within private markets in recent years.
Real Estate: Fundraising Rebounds, Opportunistic Strategies Shine
Global real estate fundraising hit $127bn in Q1–Q3 2025, nearly matching 2024’s full-year total. North America’s share of global real estate deal value rose in Q1-Q3 2025, driven by faster deal closings amid expectations of interest rate cuts.
Venture Capital: AI Dominates Deal Flow Despite Fundraising Headwinds
AI accounted for over 50% of aggregate VC deal value in Q1–Q3 2025, where venture capital is a key avenue to gain access to this emerging technology. Exit activity improved—$171bn through Q3 2025, the highest since 2021—but fundraising remains sluggish at $64.4bn by the same period, 48% of 2024’s total.

Private Markets Investor Outlook & Predictions

The Preqin Global Reports include an analysis of trends in market sentiment measured by Preqin’s proprietary survey of 435 institutional participants,* including fund managers and LPs. Additionally, the reports provide predictions for each asset class.

Private Equity: The asset class is expected to outperform public markets over the long-term due to its ability to support high-performing businesses. However, in the short term, 80% of surveyed investors identified exits as one of their top concerns for the next 12 months.
Private Credit: 81% of investors plan to maintain or increase their allocations to private credit in the next 12 months, while distressed and asset-backed lending forecasted to be fastest-growing strategies.
Infrastructure: 40% of investors plan to increase commitments in the next 12 months, with Western Europe leading attractiveness, as the asset class ranks highest on the Investor Sentiment Index** (according to the June 2025 investor survey).
Real Estate: Investors remain cautious (30% plan to reduce commitments; 27% plan to increase), yet Europe and APAC are set to lead the real estate recovery in 2026. Interest rates remain a dominant concern for investors over the next 12 months, cited by 64% of respondents, despite the start of an easing cycle.
Venture Capital: AI remains the dominant theme for 2026, alongside fintech and healthtech; fundraising challenges persist despite an improving exit environment.

Please get in touch if you are a full-time member of the press and would like to receive a full copy of any of the reports. For any media requests, please contact press@preqin.com

Notes to the editors

* Survey results from November 2025

** The Investor Sentiment Index is a quantitative measure, calculated and published by Preqin based on their proprietary investor surveys. It highlights how investors plan to adjust their private market commitments in the coming year, based on survey results from the previous year.

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About Preqin, a part of BlackRock

Preqin empowers financial professionals who invest in or allocate to private markets with essential data and insights, supporting them throughout the entire investment lifecycle. Preqin has pioneered rigorous methods of collecting private data for over 20 years and enables more than 200,000 professionals globally to streamline how they raise capital, source deals and investments, understand performance, and stay informed. Acquired by BlackRock in 2025, Preqin complements the firm’s Aladdin technology platform to provide investment solutions for the whole portfolio. For more information visit www.preqin.com.