Outlook 2025: Private markets
Private market asset classes continue to offer potential for enhanced returns and income, improved portfolio resilience and differentiated access to key global mega themes – and 2025 is shaping up to be a strong vintage in which to invest.
Key points
- 2025 presents a promising landscape for private market investments, with favourable cycle alignments offering return and income potential.
- Amidst geopolitical tensions, private markets are key for portfolio resilience.
- Despite political changes, we foresee the trend towards decarbonisation continuing, with private markets playing a pivotal role.
We anticipate 2025 to be an attractive environment for new private market investments, offering potential for both return and income generation as cycles related to private market fundraising, technological disruption and the global economy align favourably.
Simultaneously, considering ongoing geopolitical tensions and the elevated risks of escalating conflicts, the role of private markets in providing portfolio resilience remains crucial. Meanwhile, and despite political changes in the US, we expect the trend towards decarbonisation to persist driven by its strong economic rationale, with private market investments continuing to play a pivotal role in driving the global energy transition.
Here we outline private market strategies that we consider particularly well-positioned to achieve the four key goals commonly pursued by our clients in private market investments: capturing return opportunities, generating income, enhancing portfolio resilience, and advancing decarbonisation and impact.
This site is for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. This site is solely intended for use by institutional investors and institutional-investment industry consultants.
Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser, CRD Number 105820, providing asset management products and services to clients in the US and registered as a Portfolio Manager with the securities regulatory authorities in Canada. Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Canada. SFA markets certain investment vehicles for which other Schroders entities are investment advisers.
Schroders Capital is the private markets investment division of Schroders plc. Schroders Capital Management (US) Inc. (‘Schroders Capital US’) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).It provides asset management products and services to clients in the United States and Canada.For more information, visit www.schroderscapital.com
SIMNA, SFA and Schroders Capital are wholly owned subsidiaries of Schroders plc.
