Private Markets Poised for Rebound Despite Rates & AI Disruption, Pantheon Outlook
- Editor
- Feb 13
- 1 min read
Updated: Feb 15
What's New
Pantheon's Private Markets in 2025 report reveals a significant shift in private market dynamics, with secondaries volume hitting a record $160bn in 2024 amid strong demand for liquidity solutions and continued higher-for-longer interest rates.
Why It Matters
The private markets landscape is evolving rapidly as AI adoption, geopolitical tensions, and changing monetary policy create both challenges and opportunities for investors across private equity, credit, and infrastructure sectors.
Big Picture Drivers
Rates: Higher-for-longer interest rate environment moderating valuations and deal activity
Technology: AI driving massive data center expansion, requiring 160% more power by 2030
Liquidity: Record secondary market activity providing crucial portfolio management options
Mid-market: Growing investor interest in mid-market opportunities, with 96% of PE-backed companies in this segment
Innovation: Semi-liquid funds reaching $350bn in assets, democratizing private market access
By The Numbers
Private equity deal volume: $1.5tn in 2024, up 11% from 2023
Private credit origination: 76-89% of loan volumes in 2024
Infrastructure fundraising: $95bn in 2024
Secondary market volume: $160bn, setting new record
Average PE hold periods: Extended to 6 years, longest ever
Key Trends to Watch
Continuation vehicles becoming mainstream as GPs seek flexible exit options.
Data center power demand expected to grow from 3% to 19% of total requirements by 2030.
Mid-market opportunities gaining traction with potentially higher returns but wider dispersion.
Infrastructure modernization accelerating with average grid age of 40-50 years in developed markets.
The Wrap
While market uncertainty persists, private markets are demonstrating resilience through innovation in deal structures, growing secondary market liquidity, and strategic positioning in high-growth sectors like AI infrastructure and renewable energy.
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