Portfolio companies say geopolitical risk is now the top challenge for them going into the second half of this year, according to a new survey.
Research conducted by Antares Capital found that 55 per cent of respondents saw geopolitical risks among their top five challenges for H2 2025, shortly followed by 53 per cent who said sales volume demand, and 51 per cent who said interest rates and Fed policy.
“Geopolitical risk understandably shot up to the top challenge as of mid 2025, followed by sales volume and interest rates, which remained top of mind. Tariff concerns moved up significantly, but labor supply declined as a concern,” the firm said in its report.
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Firms are feeling less bullish about deploying capital for the remainder of this year than they did over the same period in 2024, the research also found.
Less than 50 per cent of respondents said they expect to deploy more capital than prior years in new platforms, a decline on previous surveys.
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However, Antares said that while firms remain cautious, the general consensus is that the worst is over.
“While sponsors remain somewhat cautious about the economic outlook following the shock of Liberation Day in April, the initial worst-case expectations have eased,” said Doug Cannaliato, co-head of originations at the business.
“We have seen a moderate increase in new deal activity heading into the second half of 2025, and we expect this steady pace to continue.”
