STUDIES | ALTERNATIVE INVESTMENTS

Neuberger Berman
PRIVATE MARKETS: Q4 2024 PRELIMINARY VALUATION SUMMARY & ANALYSIS
For Q4 2024, based on preliminary analysis, NB Private Markets currently anticipates buyout fund (including growth equity) valuations to be modestly positive in reported currency, increasing by 1.3%, but flat in terms of USD, with an average decrease of 0.3%, as FX translation was a significant factor in Q4. Venture capital funds will increase in value by an average of 1.7% in USD (+2.2% in reported currency) on average. Private equity distribution rates remained relatively low throughout 2024 as a percentage of beginning NAV, but there were some signs of recovery with Q4 producing the highest quarterly distribution rate of the past three years. >more

KfW Research
DEUTSCHER VC-MARKT NACH DEM "BOOM AND BUST": RÜCKKEHR ZU NACHHALTIGEM AUFWÄRTSTREND SOLLTE ZIEL SEIN
The German venture capital market has developed positively in recent years and is much more mature today than it was a decade ago. Nevertheless, it is still lagging behind key international markets where more capital is available to start-ups. While the boom and bust phase that began in 2021 appears to have been overcome and the signs indicate that the market will be able to continue on its growth path this year, the sustainable development of the market in key areas of activity still requires targeted and long-term efforts. In particular, the mobilization of private capital for venture capital investments is crucial for this. >more

BCG
INFRASTRUCTURE STRATEGY 2025: HOW INVESTORS CAN GAIN ADVANTAGE AS THE ASSET CLASS MATURES
In response to the past couple of challenging years for private infrastructure investing, funds are broadening their traditional mandates, seeking out new sources of investment capital and continuing to up their operational game. Already, the results appear positive, if cautiously so. While investment activity in 2024 was still down significantly compared to the peak year of 2022, infrastructure assets under management reached an all-time high in 2024, and fundraising is up modestly from the previous year. >more

Bank for International Settlements (BIS)
THE GLOBAL DRIVERS OF PRIVATE CREDIT
Private credit funds have increased their assets under management (AUM) from about $0.2 billion in the early 2000s to over $2,500 billion today. As private credit's footprint in the financial system develops, interest is growing among regulators and in public policy circles in understanding its drivers and attendant financial stability implications. This article explores global patterns in the growth of private credit and contributes to the literature by systematically studying its underlying drivers with detailed loan-level data. Moreover, it examines how changes in the cost of capital may have supported the growth of private credit vis-à-vis banks. >more

Bain & Company
GLOBAL PRIVATE EQUITY REPORT 2025
Through one lens, 2024 can be considered the year of the partial exhale. Interest rates and inflation finally came down. Economic growth in many markets remained stable. In response, deal investment and exit value increased. Alas, fund-raising struck a discordant note, but as we know, fund-raising is a lagging indicator for deal activity. The real culprit behind lackluster fund-raising is a persistent liquidity situation for global limited partners (LPs). While exits grew, distributions as a portion of net asset value sank to the lowest rate in over a decade. Positive signs? Rates appear poised to remain stable or decrease in many markets. Dry powder is still mountainous and aging. General partners are finding creative ways to boost LP liquidity. More dollars should flow from sovereign wealth funds and private wealth. And most important, returns remain strong. We will see if private equity can avoid black swans in 2025 and get firmly back on the growth track. >more

EY
STATE OF PRIVATE EQUITY (PE) REPORT EUROPE 2024 REVIEW
This report provides a comprehensive analysis and review of European PE activity for 2024, including investments, holding periods, exits and valuation gaps. It draws valuable insights from interviews with Jan Kallmorgen, Partner, EY Strategy & Transactions and Peter Witte, Director, EY Global Private Equity Lead Analyst, who share their views on Trump 2.0, geopolitical uncertainty and its impact on PE. The State of PE Report gives a strategic view of the year through deep dives across countries and regions in Europe. >more

KfW Research
VENTURE CAPITAL – MARKTTRENDS 2025
Professional venture capital investors have in-depth technology and industry knowledge, invest to generate returns and therefore play a key role in the allocation of innovation and growth capital. The expectations of German investors currently diverge across the various technological domains. Investors see very good growth opportunities for artificial intelligence, cybersecurity and dual use technologies. Climate tech evolved into the technological area with the highest deal volume in the German venture capital market in 2024 but growth expectations for 2025 are more muted than three years ago. Investors see relatively low growth opportunities in more mature markets, especially in e-commerce. >more

KPMG
VENTURE PULSE Q4'24
VC investment in Europe rose in Q4’24, although the total investment in the region for 2024 fell short of 2023 results, highlighting the significant challenges experienced in the VC space over the last twelve months. The number of VC deals remained very low in Q4’24 as investors placed more capital in a much smaller number of proven, high-quality companies. The UK attracted the largest share of VC investment in the region during Q4’24 helped by a $1.3 billion raise by AI-enabler data platform company GreenScale. The UK also attracted the most investment during 2024 as a whole, followed by France and then Germany. >more

KfW Research
GERMAN PRIVATE EQUITY BAROMETER Q4 2024
The German private equity market was in the doldrums at the end of 2024. The sentiment indicator dropped to -44.6 balance points in the fourth quarter of 2024. Without the steep but brief slump during the COVID-19 shock in the first quarter of 2020, the indicator would have hit a new all-time low in the final quarter. The economic worries of small and medium-sized enterprises in Germany are obviously weighing so heavily on business activity in the private equity market that the recent key interest rate reductions failed to halt the further decline in sentiment. >more

KfW Research
GERMAN VENTURE CAPITAL BAROMETER Q4 2024
After the slump in sentiment in the German venture capital market appeared to have been largely overcome, the business climate fell again at the end of 2024. The VC market sentiment indicator dropped to -4.1 balance points in the fourth quarter of 2024. This decline is primarily an expression of the setback in the assessments of current business conditions, while expectations improved. The improved expectations give reason to be optimistic that the business climate will soon gain new momentum. The initial outlook for investment activity in 2025 therefore remains good despite mixed signals from deal flow. >more

Coinbase
2025 CRYPTO MARKET OUTLOOK
As we look forward into 2025, the cryptocurrency market is poised for transformative growth. The maturation of the asset class continues to gain momentum, with increasing institutional adoption and expanding use cases across its various sectors. In just the past year, spot ETFs were approved in the US, tokenization of financial products increased dramatically, and stablecoins saw massive growth and greater integration into the global payments framework. >more

M&G Investments
GLOBAL REAL ESTATE OUTLOOK 2025: A NEW CHAPTER BEGINS
Appetite for real estate investments is continuing to rise, given most global markets have reached a turning point, with capital values largely stabilised and some having begun their recovery phase. As we enter a new cycle, we believe lower entry prices, coupled with strengthening rental growth, make for attractive return potential. We see ripe conditions for investors to leverage structural sector tailwinds, underpinned by supply constraints and increasing demand. However, as we expect the market recovery to be uneven, backing the right asset in the right place is likely to be the key to outperformance. >more

KfW Research
BETEILIGUNGSGESELLSCHAFTEN NUTZEN KI FÜR SOURCING, SCREENING UND DUE DILIGENCE
Around one in six financial investors uses AI tools. The planned values for the coming years clearly exceed the current use of AI. VC investors are more open to the use of AI than later-stage investors. AI is mainly used for sourcing, screening and due diligence. The main benefit of AI currently appears to lie primarily in reducing complexity. >more

Deutsche Bank Research
PROPERTY MARKET IN 2025: NO NEW BOOM BUT HIGHER PRICES AHEAD
After the interest rate shock-induced price correction in 2022 and 2023, all asset classes stabilized or began recovering in 2024. We anticipate this positive price trend to continue, with nominal prices rising roughly in line with inflation. Falling interest rates are a particularly supportive factor, along with asset-class specific drivers. We expect a residential housing price recovery to be driven by a combination of a growing housing shortage resulting in rising rents and the prospects of a less disruptive regulatory impact on the heating market. In the office market, we expect the recent price stabilization to transition into an outright recovery, with increasing demand driven by reduced remote work and limited new supply. In the retail sector, the substantial market correction over the last six years already turned into first green shoots in 2024. We also expect slightly higher prices in 2025 and beyond. >more

BCG
SOVEREIGN WEALTH FUNDS AND PUBLIC PENSION FUNDS ARE RESHAPING PRIVATE MARKETS
Principal investors play a critical role in the investment world. Evolving expectations, a shifting interest rate environment, and the need to manage increasingly large asset bases for both performance and impact are transforming how and where these investors allocate capital. As principal investors assume a more prominent role in the investment landscape and in society more broadly, their relationships with the general partners (GPs) that manage much of their capital are also being reshaped. To succeed in this new environment, principal investors and GPs must recognize the influence of current market trends and adapt to the shifting dynamics that drive investment strategies across asset classes. >more

Dechert LLP
2025 GLOBAL PRIVATE EQUITY OUTLOOK
Our research, produced in conjunction with Mergermarket, provides compelling insights into an industry that has been through a period of seismic change. After 15 years of ultra-low interest rates, the PE sector has had to adjust to more normal borrowing costs over the last three years – and to endure a period of almost constant geopolitical volatility, economic turmoil and industry upheaval. Against such a backdrop, our research provides crucial context. It represents an opportunity for PE firms to take stock – to see their industry through the lens of their peers and Dechert’s own PE practice. Some 100 global firms were generous enough to give their time to this research. Taken in aggregate, their response provides a wide-ranging snapshot of the PE landscape. >more

KfW Research
GERMAN PRIVATE EQUITY BAROMETER Q3 2024
The business climate on the German private equity market has fallen significantly for the second time in a row. The business climate indicator lost 19.0 points to -39.6 balance points in the third quarter of 2024. The indicator has thus fallen to a new 4-year low; in recent years, sentiment has only been worse during the coronavirus shock. After the assessment of the current business situation had already slumped in the previous quarter, although the outlook had not deteriorated quite as much, the assessment of business expectations is now also falling. >more

KfW Research
GERMAN VENTURE CAPITAL BAROMETER Q3 2024
The VC business climate in Germany has improved further and is now back in line with the long-term average. In the third quarter of 2024, the business climate indicator for the early-stage segment gained 8.7 points to -0.4 balance points. While the assessment of business expectations stabilized with a slight increase, the assessment of the business situation rose significantly. As a result, the indicator light for the current business situation has now also changed from red to yellow. >more

Arthur D Little | Invest Europe
THE INSIGHT: STATE OF THE EUROPEAN PRIVATE EQUITY INDUSTRY 2024
The survey of more than 250 managers and investors highlights improving optimism about activity over the coming 12 months – and in the medium term – as the macro backdrop stabilises and new technologies create new opportunities for evolution and expansion. >more

Invest Europe
H1 2024 EUROPEAN PRIVATE EQUITY ACTIVITY
A detailed analysis of private equity and venture capital fundraising, investment, and divestment across Europe in the first half of the year. Green shoots in exits, VC investment turns corner, amid ongoing challenges in H1 activity. >more

Aurum
HEDGE FUND INDUSTRY DEEP DIVE: Q3 2024
Hedge funds generated positive performance during Q3, up 2.4%, but underperformed both bonds and equities. Strategies that typically have a higher beta to equities were the top performers during Q3: long biased was up 5.1% in Q3, and up 12.4% YTD, and equity long/short was up 2.9% in Q3 and up 11.3% YTD. Quant dropped from being the top performing strategy in H1 to the second from bottom YTD, after returning -2.3% for the quarter. Arbitrage remains the bottom performing strategy YTD, returning 4.2% Industry AUM grew over the quarter with positive P&L offsetting net outflows. >more

BCG
SUSTAINABILITY IN PRIVATE EQUITY, 2024
We are pleased to present the 2024 edition of our annual report on sustainability in private equity (PE). Last year we shared our inaugural report, outlining the sustainability performance of the industry and its connection to value creation. This year’s data from the ESG Data Convergence Initiative (EDCI) shows that, relative to their public company peers, privately owned companies’ performance on sustainability topics continues to be mixed—outperforming public entities in some areas, such as job creation, and lagging in others, such as board diversity. >more

European Investment Fund | Invest Europe
VC SURVEY 2024
Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, has joined forces again with the European Investment Fund, Europe’s largest venture capital investor, for the Venture Capital Survey 2024. The study highlights how exits have become the biggest challenge for venture capital in the past year, but that a majority expect a pick-up in activity in the next 12 months as interest rates fall and conditions for selling portfolio companies improve. >more

KfW Research
VENTURE CAPITAL-DASHBOARD Q3 2024
Going into the second half of the year, the German VC market sent out a positive signal, giving hope for a strong conclusion to the year in the coming quarter. In Q3 2024, the quarterly volume of investment in German start-ups exceeded the threshold of EUR 2 billion again for the first time in more than a year. Overall, German start-ups raised some EUR 2.5 billion from investors in 280 funding rounds. >more

HSBC
HEIGHTENED VOLATILITY? HEDGE FUNDS COULD HELP WEATHER THE STORM
2024 has been a year which, for many, has confounded market expectations. Heading into the year, the market had priced in a number of interest rate cuts, with the idea from a macroeconomic perspective of a ‘soft-landing’ looking more tangible than alternative scenarios. Indeed, markets seemed to be following this script for the first half of the year. Equities reached new highs, powered by continuous enthusiasm for artificial intelligence, semiconductors, and healthcare and expectations for interest rate cuts during the second half of the year. Moving into the second half of the year , we have experienced a different environment. From the mid-July peaks, equities pulled back as allocators crystallised profits and rotated into other asset classes. The tension underpinning monetary policy and geopolitics came to a head in early August, as markets experienced a sharp, albeit temporal, sell off. >more

Houlihan Lokey
EUROPEAN REAL ESTATE MARKET UPDATE
In 2023, nonlisted real estate capital-raising activity for Europe fell 55% year over year — reaching its lowest levels since at least 2014 — driven by high costs of capital, widening cap rates, and valuation uncertainty. As of March 2024, more than 80% of the capital raised in 2023 had yet to be deployed, causing additional strain on the ability to fundraise. In Q1 2024, European commercial real estate investment amounted to €37 billion (down approximately 40% YoY), marking the slowest start to the year since 2013. As the rate of decline begins to show signs of stabilization, Savills estimates that investment volume in Q2 2024 increased 19% from Q1, driven by capital availability and the low base of investment volume over the past 12 months. >more

Lazard
INTERIM SECONDARY MARKET REPORT 2024
The secondary market demonstrated considerable strength in the first half of 2024, generating an estimated $71 billion of volume and building the foundation for a record year overall. Despite some positive trends in the M&A market, lagging distributions have encouraged sponsors and limited partners to access the GP-led and LP-led secondary markets to generate liquidity. >more

KfW Research
GERMAN VENTURE CAPITAL BAROMETER Q2 2024
The VC business climate continues on its path to recovery. In the second quarter of 2024, the business climate indicator for the early-stage segment gained 10.6 points and now stands at -8.9 balance points. The climate traffic light is therefore about to change from red to amber. Once again, both sub-components of the business climate, the current business situation and business expectations, are increasing at a similar rate. >more

KfW Research
GERMAN PRIVATE EQUITY BAROMETER Q2 2024
Shortly before exceeding its long-term average, the business climate on the German private equity market collapses again. The business climate indicator lost 20.6 points to -23.4 balance points in the second quarter of 2024. There was already a similarly sharp slump a year ago in the second quarter of 2023. In particular, the assessment of the current business situation is significantly worse again, having improved noticeably in the previous quarter. >more

KPMG
Q2'24 VENTURE PULSE REPORT – EUROPE
VC investment in Europe rose quarter-over-quarter — from $13.9 billion in Q1’24 to $17.8 billion in Q2’24, driven by a solid uptick in mega-deals, including a $1 billion funding round by AI autonomous driving technology company Wayve, a $999.6 million raise by consumer lending platform Abound, a $650.6 million raise by LLM-focused Mistral AI, and a $621 million raise by neobank Monzo. >more

Aurum
HEDGE FUND INDUSTRY PERFORMANCE DEEP DIVE – H1 2024
Hedge funds ended H1 2024 up 6.1%, outperforming bonds, -3.2%, but behind equities, +9.2%. Quant was the strongest performing master strategy in H1, +8.7%, after being the weakest master strategy in 2023. Arbitrage is the worst performing strategy, delivering +2.1% in H1, after being the second-worst strategy in 2023. Industry AUM grew, albeit marginally, in the first half. This growth was largely driven by P&L; all strategies had negative net flows except multi-strategy and quant. Alt UCITS underperformed hedge funds in all strategies, with the exception of long biased alt UCITS which delivered 6.2% v 5.5% for long biased hedge funds. >more

KfW Research
VENTURE CAPITAL-DASHBOARD Q1 2024
In the first quarter of 2024, German start-ups raised EUR 1.9 billion in 195 financing rounds. After the consolidation phase that began at the beginning of 2022, the German VC market has leveled off at the current level for several quarters. A boom in investment activity this year appears possible, particularly due to the available free funds among investors. >more

Coller Capital
PRIVATE CAPITAL BAROMETER: SUMMER 2024
Since 2004, Coller Capital’s Global Private Capital Barometer has provided a unique snapshot of the plans and opinions of institutional investors in private capital based in North America, Europe, and Asia-Pacific (including the Middle East). This 40th edition of the Barometer captured the views of 110 private equity investors from around the world. Its findings are representative of the LP population by: Investor location, Type of investing organisation, Total assets under management, and Length of experience of private capital investing. >more

Bain & Copmany
SEARCHING FOR MOMENTUM: PRIVATE EQUITY MIDYEAR REPORT 2024
Private equity’s two-year slide in deals, exits, and funds closed slowed in the first half of 2024, but activity remained tentative and momentum scarce. Limited partners, meanwhile, continue to press for an increased pace of distributions and are focusing new commitments on a narrow swath of favored funds. General partners who can’t shepherd portfolio companies to attractive outcomes may face a shakeout. But there are practical ways to get the wheel spinning again. >more

Invest Europe
INVESTING IN EUROPE: PRIVATE EQUITY ACTIVITY 2023
An annual survey, undertaken on behalf of Invest Europe, that collects comprehensive and robust activity data on fundraising, investment and divestment from more than 1,750 private equity and venture capital firms in Europe. >more

Invest Europe
PRIVATE EQUITY AT WORK REPORT (2024)
Detailed evidence and analysis of the European private equity and venture capital industry’s real contribution to employment, in 2022, and job creation, in 2021-22, and the far-reaching impact this has on the people, societies and economies of Europe. >more

KPMG
VENTURE PULSE Q1 2024
Global VC investment dropped in Q1’24, despite four $1 billion+ megadeals. The total number of VC deals globally also declined quarter-over-quarter, particularly Series D+ rounds. Ongoing market challenges — including the lack of exits, high interest rates, and continued geopolitical uncertainties — kept VC investors cautious during Q1’24. In addition to scrutinizing potential deals more heavily, VC investors also showed less willingness to provide bridge funding to their existing portfolio companies, driving startups to increase their focus on cost cutting and achieving profitability. >more

Deutsche Bank Research
FIVE REASONS WHY BITCOIN PRICES ARE HIGH AND WILL STAY HIGH
On March 13, Bitcoin prices reached a new all-time high of $73,157. This remarkable performance has been fuelled by five key factors: the approval of the spot Bitcoin ETF, expectations of future ETF approvals, the upcoming Bitcoin halving (expected April 19th), impending central bank rate cuts, and regulation. >more

Neuberger Berman
PRIVATE MARKETS Q4 2023 PRELIMINARY VALUATION SUMMARY AND ANALYSIS
For Q4 2023, based on preliminary analysis, NB Private Markets currently anticipates that buyout funds will increase in value by an average of 5.0% in USD while venture capital funds will increase in value by 4.2% on average. Furthermore, we see that 86% of buyout funds experienced positive NAV growth in Q4 with 75% of funds increasing in value between 0-10% during the quarter. For calendar year 2023, preliminary reporting indicates that buyout funds and venture capital funds increased in value by an average of 10.2% and 3.3%, respectively. >more

FTI Andersch | Center for Corporate Transactions and Private Equity (CCTPE) at HHL Leipzig Graduate School of Management
DIE WIDERSTANDSFÄHIGKEIT DER PRIVATE EQUITY-BRANCHE: AUSWIRKUNGEN VON KRISEN AUF DIE LEISTUNGSFÄHIGKEIT VON PORTFOLIO-UNTERNEHMEN
Only just under one in four private equity funds surveyed in Germany (23%) reported rising earnings (EBITDA) from their portfolio companies in the last twelve months. A large proportion had expected a different economic development: almost 40 percent of the funds stated that the EBITDA of their portfolio companies was below their own expectations. For almost half of the funds surveyed, the liquidity of the portfolio companies also developed worse than expected. This is the result of a recent study by management consultancy FTI-Andersch and the Center for Corporate Transactions and Private Equity (CCTPE) at HHL Leipzig Graduate School of Management. >more

Bain & Company
GLOBAL PRIVATE EQUITY REPORT 2024
The year 2023 was one of portent. Deal value fell by 37%. Exit value slid by almost half. Fund-raising dropped across private capital, and 38% fewer buyout funds closed. Interestingly, dollar commitments in buyouts surged as a number of high-performing funds came to market. But it was truly a year of haves and have-nots. Just 20 funds accounted for more than half of all buyout capital raised. The word for this market is stalled. The culprit was the sharp and rapid increase in central bank rates, which caused general partners to hit the pause button. The good news? Interest rates appear to have stabilized. Record dry powder is stacked and ready for deployment. Nearly half of all global buyout companies have been held for at least four years. In short, the conditions appear to be shifting in favor of hitting the go button. We will see what 2024 brings. >more

Antares Capital
2024 OUTLOOK: PERSPECTIVES ON PRIVATE AND LIQUID CREDIT
As we enter 2024, we believe the read on most key middle market loan metrics suggests the opportunity for prudently deploying new private debt capital remains quite favorable. All-in yields and the middle market yield premium remain at the high end of their long-term range; total debt-to-EBITDA leverage has declined below its long-term average; PE sponsor LBO equity contributions are near record highs; and first-lien yield per unit of leverage (excluding unitranche) remains near the highest it has been since at least 2013. Less constructive is LBO EBITDA-to-cash interest given the spike in interest rates. >more

Lazard
2023 SECONDARY MARKET REPORT
The secondary market ended on a strong note in 2023, delivering a third consecutive year of estimated volumes in excess of $100 billion and notching the market’s second highest annual tally in 2023. Across both the GP-led and LP-led markets, a continued lack of liquidity from traditional sources drove investors to seek more innovative methods of generating proceeds through the secondary market. The market experienced a relatively slow first half of 2023 and then a very strong second half as investors and sellers appeared to perceive opportunity and bid-ask spreads narrowed. >more

Aurum
HEDGE FUND INDUSTRY PERFORMANCE DEEP DIVE – FULL YEAR 2023
A resurgence in risk assets provided a significant tailwind to more long-biased and/or historically higher beta strategies, which were among the worst performing strategies in 2022. There are a handful of sub-strategies that delivered strong performance both in 2022 and 2023 – quant – stat arb was up 10.9% in 2023 and 12.7% in 2022. While macro – FIRV was up 10.9% and 8.4%. Five-year performance (CAR) for hedge funds now stands at 6.5%, comfortably outperforming bonds (-0.4%) but underperforming equities (+9.4%) from a total return perspective, however, outperforming equities from a risk-adjusted perspective (Sharpe of 0.7 vs 0.5). Dispersion has continued to fall and now sits at levels more in line with those observed pre-COVID. >more

KfW Research
GERMAN PRIVATE EQUITY BAROMETER Q4 2023
The data for the business climate indexes of the German Private Equity Barometer and the German Venture Capital Barometer are taken from a quarterly survey of the approx. 200 members of the German Private Equity and Venture Capital Association (Bundesverband Deutscher Kapitalbeteiligungsgesellschaften – BVK) and further German private equity companies. On the one side, the market climate in the later-stage segment is reported and on the other the market climate in the venture capital segment of the German equity capital market. The climate data are based on estimates from investment companies, with the focus being on established SMEs for the German Private Equity Barometer and on investment in start-ups and new technology companies for the German Venture Capital Barometer. >more

KPMG
VENTURE PULSE Q4 2023
2023 was a particularly difficult year for VC investment globally given the significant economic challenges, geopolitical tensions and conflicts, and ongoing concerns related to the valuations of VC-backed companies. Both annual global VC investment and the total number of VC deals globally fell to levels not seen since 2019 as VC investors continued to show an abundance of caution with respect to their dealmaking activities. >more

Lazard
2024 EUROPEAN VENTURE & GROWTH OUTLOOK
A key challenge over the past 18 months has been the recycling of invested capital, driven by the fall in primary issuance and lower exit volumes. Heading into 2024, a growing IPO backlog and signs of increased strategic and sponsor participation could help increase levels of DPI. In turn, this may encourage European venture-backed companies and investors to return to the equity funding market. >more

KfW Research
VENTURE CAPITAL: MARKTBEOBACHTUNG MIT SOCIAL MEDIA-SENTIMENT-ANALYSEN
Private markets, such as the VC market, are characterized by the fact that they are comparatively illiquid, meaning that external influences are only slowly reflected in observable market variables such as valuations and transaction volumes. In addition, the corresponding information on private markets is only publicly known to a limited extent. Both of these factors make it difficult to observe market movements in real time. Due to the active communication of many market participants on social media, these represent an interesting alternative source of information. >more

Bain & Company
GLOBAL HEALTHCARE PRIVATE EQUITY REPORT 2024
Investors continue trying to unlock liquidity and raise capital for healthcare deals, in a challenging fund-raising environment. Biopharma deals represent the biggest share of healthcare buyouts, while new modalities and innovative therapies such as GLP-1s transform the investment landscape. As investors look to diversify their Asia-Pacific buyout activity, India is viewed as a place to deploy healthcare capital at scale. >more

Coller Capital
GLOBAL PRIVATE EQUITY BAROMETER: WINTER 2023-24
Coller Capital’s Barometer is a unique snapshot of global trends in private equity – a twice-yearly overview of the plans and opinions of Limited Partners worldwide. This edition contains findings on: Private market M&A activity expectations; Artificial Intelligence adoption and investment appetite; Investors’ interest in continuation vehicles, co-investment opportunities, and strategy shifts; The impact of interest rates on private credit exposures and the future PE financing outlook, as well as private wealth capital growth expectations; Future target allocation shifts as well as other key themes shaping the private markets industry. >more

M&G Investments
GLOBAL REAL ESTATE OUTLOOK: NEGOTIATING HIGHER RATES AND OTHER NEW PARADIGMS
With increasing talk of ‘higher for longer’ interest rates, global real estate markets are adapting to new paradigms. Property yields have risen, but not to the same degree as rates, prompting some to suggest further repricing is needed in order to restore spreads. But is real estate dependent on a wide spread over bonds to deliver performance, or can other return drivers compensate? With ongoing inflationary pressures and other headwinds buffeting the global economy, we assess the growth prospects for rents and how they differ across regions and sectors given varied structural and cyclical trends. Investors may be drawn to growth, but are there also attractive income yields to be found? In this Global Real Estate Outlook, we explore the opportunities as well as the risks that need to be considered. >more

UBS | Art Basel
THE ART MARKET 2023
The seventh edition of The Art Basel and UBS Global Art Market Report provides a comprehensive, macro-economic analysis of the state of the global art market in 2022. The Art Market 2023 looks closely at how the lingering effects of the pandemic continue to affect the market and forecasts what trends could be seen entering 2023. The Art Market 2023 is written by cultural economist Dr. Clare McAndrew, founder of Arts Economics, and published by Art Basel and UBS. >more

BlackRock
GLOBAL REAL ESTATE VIEWPOINT
Today’s macroeconomic environment has triggered a revaluation process in real estate globally. Higher interest rates, inflation and volatility has led investors to command higher risk premiums across asset classes. Private markets started to come under pressure in the second half of 2022 as investors globally are requiring higher risk premiums. Revaluations are occurring at difference paces across various regions and markets. >more

KfW Research
GERMAN VENTURE CAPITAL BAROMETER Q3 2023
The business climate on the German venture capital market remains on course for recovery in late summer 2023. With an increase of 2.4 points to -19.6 balance points, the business climate indicator for the early-stage segment is trending slightly better than in the previous quarter. The assessment of the current business situation is catching up slightly with business expectations, which are still significantly more optimistic. The indicator for the current business situation rose by 7.3 points to -32.4 balance points, while the indicator for business expectations weakened slightly to -6.8 balance points (-2.5 points). >more

Arthur D Little | Invest Europe
THE INSIGHT: STATE OF THE EUROPEAN PRIVATE EQUITY INDUSTRY
Arthur D. Little (ADL) and Invest Europe’s European PE survey, combined with Invest Europe’s first half activity data, takes a clear look at the evolution of fundraising, investment, and divestment in the first six months of the year and gathers fund manager and investor views on the short- and medium-term outlook for activity. The survey also investigates the challenges and opportunities that have the potential to shape Europe’s PE and VC industry further into the future. >more

EIF | Invest Europe
VC SURVEY 2023
The study looks at the current situation, developments in the recent past, and expectations for the future. The respondents of the EIF VC Survey, VC fund managers investing in Europe, revealed very interesting insights, providing a unique picture of the developments and the market sentiment in 2023. >more

Alix Partners
PE ESG SURVEY REPORT
The private equity (PE) industry now routinely considers environmental, social, and governance (ESG) issues when evaluating prospective acquisitions and making deals. The ESG label has become a political issue — particularly in North America — but industry leaders recognize that companies with strong governance, openness to the best talent, and environmentally efficient processes — whatever label you give those matters — are good prospects, and industry leaders have been acting accordingly. >more

Lazard
INTERIM SECONDARY MARKET REPORT 2023
Lazard’s Interim Secondary Market Report for 2023 finds that buyer appetite in the secondary market remains resilient, as investors continue to deploy capital into diversified LP portfolios and best-in-class assets, despite the more challenging macroeconomic environment. The report identified two distinct market dynamics: In the LP-led segment, buyers and sellers continued to have difficulties with bid/ask spreads persisting. In the GP-led segment, secondary buyers expressed the need for higher returns and margins of safety. Such dynamics resulted in total secondary deal volumes in the first half of 2023 of approximately $43 billion, down by around 28% compared to H1 2022, with GP-led transactions accounting for 40% of overall volumes. >more

KfW Research
KFW VENTURE CAPITAL-DASHBOARD Q2 2023
In Q2 2023, German startups raised a total of almost EUR 2.5 billion in 266 financing rounds. Thus, deal volume in 2023 increased for the second quarter in a row (+25% QoQ). In contrast, the number of deals declined slightly (-8%). After the cooling in 2022, the German VC market has thus stabilized significantly for the time being in the first half of 2023. Viewed over the entire first half of 2023, deal volume was again higher than in the previous 6 months. >more

Bain & Company
STUCK IN PLACE: PRIVATE EQUITY MIDYEAR REPORT 2023
After a year of sharply rising interest rates, a banking crisis, and widespread geopolitical turbulence, it’s no surprise that private equity (PE) activity continued to slump in 2023’s first half. Uncertainty is the enemy of dealmaking, and uncertainty has been swirling through global markets in abundance. >more

Man Group
Q3 HEDGE FUND STRATEGY OUTLOOK: UPGRADING DISTRESSED AND MERGER ARBITRAGE
The year 2023 continues to be one of uncertainty, which has led to muted returns from many hedge fund strategies during the first half. The weakness of the US banking system and the headwinds from the higher rate regime are at odds with the strong performance of risk assets during the first six months of the year. Forward paths from here remain difficult to discern, but within markets we believe there are more attractive risk/reward trade offs now than earlier in the year. >more

Aurum
HEDGE FUND INDUSTRY PERFORMANCE DEEP DIVE – H1 2023
The hedge fund industry was up 3.4% in H1 23 with performance being heavily weighted to the start of Q1 and the end of Q2. The best performing strategies of 2022 have underperformed significantly in H1 23 as strategies with higher beta to risk assets have led the performance. >more

KPMG
VENTURE PULSE Q2 2023
Investment in the global venture capital market fell dramatically in the first half of this year compared with the same period last year. While global venture capital investments from January to June 2022 were still at $331.1 billion, this sum fell by 50% to just $163.6 billion in the first six months of this year. This almost reached the low level of the Corona year 2020 (156.6 billion). >more

Neuberger Berman
GP-LED SECONDARIES: PRIVATE EQUITY’S MOST UNDERSERVED MARKET?
Over the last 12 to 18 months, we have witnessed a meaningful decline in private equity (PE) exits, which triggered an estimated $106 billion of net cash outflows for PE investors in 2022 alone. In our view, this dynamic — combined with the denominator effect and generally elongating holding periods — is opening attractive opportunities for providers of liquidity to the private markets. We believe GP-orchestrated “continuation funds” can help ameliorate this liquidity challenge and also offer a compelling way for investors to gain exposure to private markets at a potentially attractive point in the cycle and in a targeted, highly selective manner. >more

KfW Research
VENTURE CAPITAL-MARKT IN DEUTSCHLAND DASHBOARD Q1 2023
In the first quarter of 2023, a total of EUR 1.9 billion was invested in 254 financing rounds on the German VC market. In the short term, the market is thus unimpressed by the bankruptcy of the US Silicon Valley Bank. However, a turnaround remains to be seen due to persistently unfavorable conditions (inflation, tightening of monetary policy, poor prospects for IPOs). >more

Coller Capital
GLOBAL PRIVATE EQUITY BAROMETER, SUMMER 2023
Coller Capital’s Barometer is a unique snapshot of global trends in private equity – a twice-yearly overview of the plans and opinions of Limited Partners worldwide. This edition contains findings on: LPs’ expectations for private equity vintage years 2023 and 2024; attractive sectors and strategies for private equity investment; LPs activity around due diligence; challenges for LPs in the fund investment process; LPs’ views on the usefulness of AI in the PE transaction process; LPs views on the ‘anti-ESG’ movement in the US. >more

UBS
QUARTERLY INSIGHTS INTO PRIVATE MARKETS - EDITION MAY 2023
In 2023, persistent high inflation, volatility across the global banking sector, and continued geopolitical conflicts remain key themes for many investors. Against this backdrop, public equities have performed surprisingly well, and markets are finally seeing signs of disinflation with the pricing weakness across the commodity complex, more visibility to peak rates, and contagion from recent bank failures seemingly under control. >more

KfW Research
WAGNISKAPITAL FÜR NET ZERO: POTENZIALE UND HERAUSFORDERUNGEN
Climate-tech investments are on the rise in the VC market. This is the conclusion of a new study by KfW Research, which analyzes developments, potentials and challenges of climate tech on the German VC market. Climate tech plays an important role for the German VC market. In 2022, more than EUR 1.5 billion was invested in 118 financing rounds in Germany. The significant growth in climate-tech investments in the German VC market, was greater than investments in the rest of the market. However, due to the size of the VC market in the U.S., there is significantly more funding available per startup. A survey of German VC investors makes it clear that high growth opportunities arise primarily due to the expected increase in demand from market players. On the other hand, a high technological risk and the high financing requirements pose a particular challenge for investors in the climate tech sector. >more

Bain & Company
IS STRATEGIC M&A FINALLY CATCHING ON IN PRIVATE CAPITAL?
Consider an industry with more than 15,000 firms in which scale can be a clear advantage. Sounds like a fertile field for consolidation, right? Not if the industry happens to be private capital. For much of the industry’s history, consolidation has largely been a nonstarter. Firms have tried over time to expand geographically or add an asset class through M&A. But very often, mergers have foundered on the many levels of integration complexity that arise when private partnerships try to combine. >more

Invest Europe
PRIVATE EQUITY AT WORK REPORT 2023
Now in its fourth year, Invest Europe’s Private Equity at Work report provides unequalled insight into how private equity and venture capital have helped drive the recovery from the effects of the pandemic, creating 6.5% more jobs at companies they backed in 2021, or over five times the average across Europe. With data going back to 2017, the study shows how private equity and venture capital support employment and create jobs year after year, through periods of economic growth and downturn alike. >more

State Street
DIGITAL ASSETS AND INVESTMENT STUDY 2022-2023
State Street commissioned Oxford Economics to conduct a survey of 300 investment institutions, including asset managers, asset owners and insurers, about their approaches to digital assets and investment technology. It significantly expands on our previous research in this field, looking into organizations’ preparedness for incorporating code-based smart contracts, blockchains and other distributed ledger technologies into their investment processes, and their preparedness to hold and trade digitally tokenized versions of traditional securities. >more

Bain & Company
HEALTHCARE PRIVATE EQUITY MARKET 2022: THE YEAR IN REVIEW
2022 was the second-biggest year on record for healthcare private equity by many measures, even though overall activity declined sharply from 2021’s record-breaking highs. The first half of 2022 saw a continuation of 2021’s record-setting pace for healthcare private equity deal volume and deal value, but geopolitical uncertainty, inflation, tight credit, and labor force pressures caught up to the market in the second half. >more

KPMG
VENTURE PULSE Q1 2023
Global VC investment fell to $57 billion in Q1’23 — a particularly low note when compared to the high of $200+ billion seen in the same quarter just one year ago. Myriad factors combined to buffet the global VC market, from the protracted war in the Ukraine and other geopolitical uncertainties to concerns about the global banking system following the sudden turbulence seen in Q1’23. Stubbornly high inflation and still-increasing interest rates have also posed their own challenges. >more

Adams Street
NAVIGATING PRIVATE MARKETS IN 2023: RETHINKING RISK, RESILIENCE, AND RETURNS
A key finding in our third Global Investor Survey is that investors are prioritizing partners that they know and trust. This would seem to be driven by market turbulence, risks from inflation and rising interest rates, and geopolitical tension. As markets surged in 2021, many investors caught FOMO (fear of missing out). The most severe cases led to the deployment of capital at elevated valuations into subscale and unprofitable private companies that may struggle to produce positive returns for investors. >more

Lazard
2022 SECONDARY MARKET REPORT
The secondary market delivered a second consecutive year of estimated volumes in excess of $100B in 2022, continuing to prove itself as a highly relevant part of the private capital markets, irrespective of the macroeconomic environment. That is not to say that the market was immune from the macroeconomic and geopolitical disruption of 2022: volumes were down ~20% on 2021. This decline can be attributed to, amongst other things, bid/ask spreads on LP sales (as declines in the public markets increased the difficulty of assessing the fair value of private investments) and secondary firms increasing selectivity on GP-led deals after a substantial year of deployment in 2021. >more

McKinsey & Compamy
GLOBAL PRIVATE MARKETS REVIEW 2023: PRIVATE MARKETS TURN DOWN THE VOLUME
Private markets have enjoyed strong tailwinds since the depths of the Global Financial Crisis (GFC). Interest rates stayed low, credit availability was high, and valuations rose consistently. Each year since its inception, this annual publication has discussed new records in fundraising and deal flow while celebrating strong performance across asset classes. Even in 2020, when activity stalled briefly during the early months of the COVID-19 pandemic, private markets hummed again in the second half. In almost every regard, 2021 was an exceptional year (as we highlighted in last year’s report) but it was not a trend breaker. Markets climbed higher still, awash with central-bank-induced liquidity. In the first half of 2022, central banks fought roaring inflation by sharply raising interest rates, and public market valuations cratered. In the private markets, first-half deal activity softened but subtly so, nearly matching the record-setting pace set in 2021. >more

KfW Research
VENTURE CAPITAL-MARKT IN DEUTSCHLAND DASHBOARD Q4 2022
In the new dashboard on the German venture capital market, KfW Research explains the developments on the market for venture capital in Germany on a quarterly basis. The focus is on investment activity in terms of the number and volume of VC deals with German start-ups by, for example, financing phase, investor origin or technology areas, exit activity and market comparison with important international benchmarks. A look at the development of venture debt transactions rounds off the overview. >more

Bain & Company
GLOBAL PRIVATE EQUITY REPORT 2023
It’s easy to think of Dickens and A Tale of Two Cities when looking back on 2022. The first six months resembled 2021: incredible numbers of deals, lots of exits, and substantial funds committed to the chase for the next five years. Then came the Federal Reserve’s rate hike in June. That move — and those that followed globally — signified the end of cheap debt in buyout markets and raised strong concerns about persistent inflation. Recession fears spooked banks from providing leveraged loans, and the dominoes fell from there, toppling year-end totals for deals, exits, and fund-raising. >more

KfW Research
GERMAN PRIVATE EQUITY BAROMETER 4. QUARTAL 2022
Sentiment in the German private equity market developed positively in the fourth quarter of last year. The business sentiment indicator rose by 9.2 points to -30.8 balance points. While situation assessments deteriorated again, the decline was more than offset by improvements in business expectations. Economic optimism is bolstering sentiment. >more

Lazard
SECONDARY MARKET REPORT 2022
The secondary market delivered a second consecutive year of estimated volumes in excess of $100B in 2022, continuing to prove itself as a highly relevant part of the private capital markets irrespective of the macroeconomic environment. Supporting this statement are a number of key findings from our survey of 2022, which include: GP-led transactions comprised ~43% of the secondary market in 2022, with continuation funds (~75% of the GP-led market) now firmly established alongside IPOs and M&A as a route to liquidity for GPs. LP-led volumes landed at close to ~$60B in 2022, with 500+ transactions completed in this arena, driven predominately by the desire from selling LPs to accelerate liquidity and the denominator effect. >more

Aurum
HEDGE FUND INDUSTRY PERFORMANCE DEEP DIVE – FULL YEAR 2022
The hedge fund industry was down 2.4% in 2022. Global equities and global bonds have fallen 20.0% and 16.7% respectively. It has been an extremely challenging year from both a markets and geopolitical perspective. If one were to sum up 2022 in two words, they could be: ‘extreme moves’. Five-year performance for hedge funds now stands at a CAR of +4.2%, comfortably outperforming bonds (-2.0%) and marginally outperforming equities (+3.0%). Multi-strategy and quant funds were the top performers in 2022; up 9.5% and 8.5% respectively. Long biased and Equity l/s delivered the worst returns; losing 13.2% and 9.6% respectively. >more

KPMG
VENTURE PULSE Q4 2022
Global venture capital investment slumped significantly last year. A total of USD 493.6 billion was invested in startups in 2022 - down from USD 730.5 billion in 2021. This corresponds to a decline of 32%. This is shown by KPMG's new Venture Pulse, for which global venture capital investments are regularly evaluated. September to December 2022 represented the fourth consecutive quarter of decline. The combination of economic and geopolitical pressure, turbulent capital markets and low IPO activity has clearly taken its toll on venture capital investments. >more

KPMG
DIGITAL ASSETS IN DEUTSCHLAND 2022
Despite recent negative price developments and headlines, the mood among private crypto investors remains predominantly positive. This is suggested by the results of a joint survey by KPMG and BTC-ECHO. More than 2,000 private crypto investors in the DACH region were surveyed about their investment behavior (84% of them from Germany). >more

Deloitte
2023 COMMERCIAL REAL ESTATE OUTLOOK
Following a pandemic-fueled course correction, the global real estate industry faces transformational shifts in how buildings will be used, valued, and transacted in 2023 and beyond. Ongoing uncertainty in the global economy could impact the industry even more. In the near term, the potential for regional or global recession or stagnation looms – and these impacts would be felt across financial services sectors. Deloitte surveyed 450 chief financial officers of major commercial real estate owners and investors to get their opinions about organizational growth and their plans for workforce, regulatory compliance, and technology. We also asked about their investment priorities and anticipated structural changes in 2023. >more