New Times,
New Thinking.

Advertorial: in association with State Street

Private markets are primed for 2025 but expert guidance is essential

In the search for diversification and optimised returns, many more equity and debt investors are putting their money into funds that invest in private companies.

For a growing number of investors, private markets have a strong pull, as they seek out new ways to maximize returns. As an alternative to the familiar, on-exchange, public markets, they offer access to an enticing array of assets – private equity, private credit, infrastructure, natural resources, real estate and more – all offering diversification and the potential to deliver superior risk-adjusted returns.

As with everything in life, however, the only constant is change, and the world of private markets is in the throes of phenomenal transition. Experts at financial services provider State Street, which helps institutional investors invest in private markets, have been delving deep into the factors that will shape private market investment in the years ahead, and their findings shed light on a market that is both complex and often challenging, but which holds great promise for a growing number of affluent investors. Click here to learn more.

From their research, it is clear that private markets are rapidly evolving, partly to meet demand from a growing pool of investors, and partly because technological advances, product innovation and regulatory changes are changing how investors access and analyse those markets. Investors can call upon an ever-larger pool of data on which to base their decisions and define their priorities. This promises great potential for market growth and new investment and distribution strategies.

The influx of more investors is accelerating the evolution of traditional processes and systems, bringing a renewed vigor to the private markets arena, which is adapting to ensure that an increasingly diverse array of investor needs is catered for. This is giving rise to a broader range of liquidity options, and the rise of evergreen and semi-liquid funds is just one way in which investors are finding greater flexibility in private markets. 

This evolution of the private markets sector gives the experts at State Street a strong sense of optimism for 2025, despite the many changes in the technology and processes, and the global macro-economic challenges. They firmly believe that new investors should be able to balance cost control and value creation, especially in sectors like clean energy, digital infrastructure and health tech.

Gathering the right insights and plugging in the right scenarios to achieve that balance, access liquidity, and control risk will be essential in this complex and potentially challenging landscape, but State Street’s research and insights team can help investors new and old to make optimally informed decisions.

To see Scott Carpenter, Global Head of Alternatives at State Street, and Chris Coleman, Global Head of Sales and Client Coverage, discuss the prospects for 2025 and guide you through the many opportunities and potential pitfalls, click here.

Subscribe to The New Statesman today for only £1 per week

Topics in this article :