Here’s a breakdown of the provided text,focusing on the key themes and data points:
Overall Theme: The text discusses trends in private markets fundraising,wiht a particular focus on the growth of impact investing and the booming secondaries market.It also highlights a consolidation trend where larger firms are capturing a disproportionate share of capital.
Key Data Points and Trends:
Insurance Capital in Private Markets:
12 billion: This figure,according to PEI data,represents insurance capital becoming available to private markets firms.
“Tip of the iceberg”: The latest tie-up involving this capital could be a sign of much larger flows to come.
Impact Investing Growth:
More capital being raised than ever before.
Impact 50 ranking: The 50 biggest impact managers raised over $212 billion in the five years to December 2024.
10% increase: this is a 10% increase compared to the previous year.
Consolidation at the top: The largest managers are raising a disproportionate share of capital.
Top 10 firms: Fundraising total is 19% higher than in 2024.
Bottom 10 firms: Five-year total has decreased 3%.
Private Equity Fundraising (PEI 300):
Plateau: Fundraising across the 300 biggest firms saw only a 0.37% growth year-on-year. “Flight to (perceived) quality”: The top 10 firms increased their totals by 5%,indicating investors are favoring established,”blue-chip” GPs. Secondaries Market Boom:
Record year expected: The market is on track for another record year.
Up to $230 billion: This is the projected volume,according to PJT Park Hill.
$200 billion milestone: The market is well-positioned to break this for the first time.
H1 2025 volumes: Surpassed most full-year totals from the past decade.
$105 billion in H1 2025: A 50% increase year-on-year.
LP stake sales: accounted for 55% of transactions in the first six months.
Pricing: discounts to Net Asset Values (NAVs) widened in April due to volatility but have as recovered. Pricing is expected to remain attractive in H2 2025 due to sustained demand from capital raising.
Multi-asset continuation vehicles: Accounted for 56% of GP-led volume in H1 2025. Future deals: PJT Park Hill anticipates advising on several multi-billion-dollar LP or GP-led deals in the next six months.
Key Takeaways:
capital is flowing into private markets, especially from insurance companies.
Impact investing is a growing sector, but the benefits are concentrated among the largest managers.
The secondaries market is experiencing significant growth, driven by LP stake sales and continuation vehicles.
* Investors are increasingly favoring established, large gps (“flight to quality”) in both impact and broader private equity.
