McKinsey – Global Private Markets Review, 2024

The 2024 edition of McKinsey's Global Private Markets Review highlights ongoing challenges in the industry, including macroeconomic headwinds leading to decreased fundraising and performance below historical averages. Despite difficult conditions, private equity buyout strategies and larger managers fared well in fundraising, leading to concentration of commitments towards known names and larger funds. The industry saw a decline in fundraising globally, with Asia experiencing the most significant decrease. LPs remain overexposed to private markets relative to their target allocations, leading to challenges in meeting planned commitments. Despite these hurdles, LPs express commitment to private markets in the medium to long term. The industry also experienced a spike in dry powder reserves, indicating ample capital available for deployment. This current landscape may signal the beginning of consolidation in private markets, although the pattern of previous downturns suggests a potential shift towards renewed entrepreneurialism and diversification among general partners and LPs.