Fundraising Research Allocators

Allocation and Fundraising Trends Report 2025

As LPs and GPs from around the globe reconvened in Paris in September 2024, IPEM and Alix Partners surveyed attendees to take the pulse of where the market is heading into 2025.

Our findings give an insight into how the 1,218 LPs in IPEM’s network are appraising their investment options and looking to uncover the right opportunities in a complex and crowded market, as well as what GPs can do to hone their strategies and appeal to investors.

The results of the survey exploring allocation and fundraising expectations for 2025 paint a picture of a challenging fundraising market, albeit one that has improved from the previous year as an uptick in exits has provided liquidity and deal activity has picked up.

A higher percentage of GPs are fundraising this year compared to 2024, a third of which have already held a first close in the previous 12-18 months. This is close to double the number of GPs raising having held a first close from the 2024 survey, highlighting the protracted nature of fundraising at the moment.

LPs heading to the Paris conference indicated investment intentions of more than €110bn in 2025, but commitment pacing was down on 2024, with more LPs planning to deploy €20m-100m than last year (28.5% vs 25% in 2024), and fewer LPs expecting to allocate €500m+ (9% vs 10.4%) and €100m-500m (22.1% vs 27%). In combination with an increased re-up rate, the outlook for GPs looking to raise from new LPs looks challenging for the coming year.

LPs have indicated that the three key considerations in the due diligence process are consistency of returns, absolute performance, and value creation approach. Managers able to clearly articulate their strengths in these areas are likely to fare better in the current climate.

 
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Antoine Colson, IPEM

“Our second annual IPEM Allocation and Fundraising Report, created in partnership with AlixPartners, really shows how competitive and nuanced the market has become.
We’re seeing a continued shift beyond traditional Private Equity, with more attention now on Private Debt and Real Assets. Interestingly, there’s also a rising interest among LPs in areas like Fund of Funds, Special Situations, and Natural Resources. Secondaries are still a strong point, especially given the ongoing challenges in M&A and public exits. This suggests that demand for Secondaries will likely stay strong through 2025. We’re also noticing that the Secondary market is branching out into new territories, such as Venture Capital, Growth Equity, Private Credit, and Infrastructure.
Re-ups are back in favourtoo, with LPs showing a clear preference for sticking with tried-and-true GP relationships. Yet with the market being so crowded, areas like the small and mid-markets are becoming increasingly competitive. It’s no surprise that fundraising is taking longer, with about a third of fundraising GPs reporting a first close in the last calendar year –almost double what we saw in 2023. As more funds come into play, hitting those fundraising targets is only going to get tougher.
At IPEM, we’re committed to fostering the growth of Private Capital by helping the industry connect in meaningful, informed ways. We’re excited to dive into these trends and opportunities with all of you and welcome you to Paris!”

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Nicolas Beaugrand, France PE & ESG Lead, AlixPartners

“The market appears slightly more fluid than this time last year, with more exits and deals in the pipeline, but conditions remain challenging. Exiting from investments has only marginally eased, liquidity remains constrained, and competition among GPs for capital remains tight. LPs are investing smaller amounts, allocating to primaries, and focusing more on Re-ups than this time last year.
Within Private Equity, there is a noticeable demand from LPs for Turnaround and Restructuring investment, and increased interest in Private Debt, particularly Special Situations and Fund of Funds, likely driven by looming debt maturities and financing challenges.


Our findings indicate strong alignment between GPs and LPs in specific sectors and technology focus areas, with Technology and Software emerging as a top consideration for more than half of LPs in 2025, followed by Healthcare.
Lastly, if the Value Creation approach, ESG and Sector Expertise remain key arguments for GPs to offer the expected performance and returns to LPs, the proper execution and capabilities to deliver them become even more critical priorities.
These are all areas where AlixPartners specialises in helping its clients define, execute or restore value creation trajectories across sectors and in highly complex environments.”

 
 
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AlixPartners is a results-driven global consulting firm that specializes in helping businesses respond quickly and decisively to their most critical challenges—from urgent performance improvement to complex restructuring, from risk mitigation to accelerated transformation. These are the moments when everything is on the line —a sudden shift in the market, an unexpected performance decline, a time sensitive deal, a fork-in-the-road decision. We stand shoulder to shoulder with our clients until the job is done, and only measure our success in terms of the results we deliver. We partner with you to make the right decisions and take the right actions. And we are right by your side.

When it really matters.

Matt Robinson
Matt Robinson is Head of Content & IPEM Community. He is responsible for the content business, including event programming, insights and partnerships.