Institutions and advisors optimistic on private markets

Institutional investors and financial advisors are optimistic on private markets, a new survey has found.

Adams Street Partners’ 2025 Global Investor Survey revealed that after a period of subdued exit activity and fundraising, respondents believe that private markets are now poised for recovery, fuelled by pent-up demand for liquidity and an evolving macroeconomic environment.

Almost half (47 per cent) of respondents ranked technology and healthcare as the most attractive sectors for private market investments in 2025, while AI-driven innovation is also emerging as a critical factor in accelerating capital flows and productivity gains.

“The continued confidence of investors in private markets demonstrates the resilience and adaptability of the asset class,” said Jeff Diehl, managing partner and head of investments at Adams Street.

“As regulatory pressures ease, capital flows strengthen, and AI-driven innovation accelerates, we see a promising investment climate for managers around the world who are well-positioned to identify, access, win, and add value to companies that can serially compound their revenue and value.”

According to the survey, investors increasingly view private markets as a long-term outperformer relative to public markets, citing advantages such as lower volatility, superior governance structures, and stronger alignment between shareholders and executives.

“Private market investors are navigating an environment filled with both challenges and opportunities,” added Jeffrey Akers, partner and head of secondary investments at Adams Street.

“Amid ongoing volatility, targeted private markets strategies can provide investors with a number of attractive benefits, such as enhanced diversification while still providing a range of options, such as with respect to liquidity, seniority within the capital structure, and targeted risk-return profiles.”