Key Takeaways
- • Record confidence and capital readiness: Asset management and private equity CEOs surveyed by KPMG in late 2025 report a significant surge in optimism, with nearly a quarter expecting outsized earnings over the next three years, positioning firms to deploy substantial dry powder as a result of falling interest rates, rising valuations, and record global assets under management.
- • AI investment as competitive imperative: Digitalization and artificial intelligence rank as top strategic priorities for institutional asset managers and PE leaders, with CEOs viewing AI as a critical value driver for competitive advantage across funds, organizations, and portfolio companies.
- • Cybersecurity paradox requires dual approach: While cybersecurity remains a primary organizational concern, leaders acknowledge AI as both a significant source of operational risk and a strategic opportunity, necessitating balanced risk management strategies.
- • Sector specialization and talent upskilling drive alpha generation: After two years of strategic focus refinement, managers are emphasizing specialized sector exposure and innovation while simultaneously prioritizing workforce upskilling, updated workplace models, and new partnerships to maximize AI adoption and value creation.
- • Favorable macroeconomic backdrop supports deployment: The combination of falling interest rates, rising valuations, and record-high global AUM has created what respondents characterize as a "green light" environment for accelerated capital deployment and meaningful exit execution.
Summary
The KPMG 2025 Global CEO Outlook, based on a comprehensive survey of 1,350 global business leaders conducted in late 2025, includes a dedicated Asset Management and Private Equity CEO Outlook that polled 110 senior industry leaders. The research documents a pivotal inflection point in sentiment across the asset management and private equity sectors, characterized by strengthening confidence and an increasingly bullish outlook on near-term growth prospects and capital deployment opportunities.
The surge in optimism is grounded in measurable macroeconomic tailwinds. Falling interest rates have improved valuations across portfolio holdings, while global assets under management have reached record highs. This convergence of favorable conditions has created what industry leaders characterize as a "green light" environment, directly translating into increased CEO confidence and readiness to deploy significant dry powder—capital held in reserve for investment opportunities. The research indicates that nearly a quarter of surveyed CEOs expect their firms to generate outsized earnings over the next three years, signaling substantial expectations for both deployment and value creation.
Strategic priorities have crystallized around artificial intelligence and digitalization as primary levers for competitive differentiation. CEOs identify AI investment as foundational to achieving alpha and driving outsized returns. The focus extends beyond internal operations to encompass how AI can enhance competitive advantages for funds, organizations, and portfolio companies within their portfolios. This represents a material shift in capital allocation priorities toward technology-enabled value creation strategies.
However, this optimistic outlook is tempered by recognition of emerging risks. Cybersecurity has emerged as a persistent organizational concern, with leaders acknowledging a nuanced challenge: AI simultaneously represents both a significant source of operational and reputational risk and a strategic opportunity for risk mitigation and operational efficiency. This "dualism" requires sophisticated governance frameworks and dual-track risk management approaches.
In tandem with technology investments, asset managers and PE firms are prioritizing human capital strategies. After two years of sharpening strategic focus through portfolio refinement and sector concentration, leaders are now emphasizing workforce upskilling, updated workplace models, and strategic partnerships to accelerate AI adoption. This multifaceted approach—combining capital deployment readiness, AI-driven competitive positioning, cybersecurity vigilance, sector specialization, and talent development—reflects a comprehensive strategy to execute meaningful exits and deliver outsized returns in the current market environment.
The surge in optimism is grounded in measurable macroeconomic tailwinds. Falling interest rates have improved valuations across portfolio holdings, while global assets under management have reached record highs. This convergence of favorable conditions has created what industry leaders characterize as a "green light" environment, directly translating into increased CEO confidence and readiness to deploy significant dry powder—capital held in reserve for investment opportunities. The research indicates that nearly a quarter of surveyed CEOs expect their firms to generate outsized earnings over the next three years, signaling substantial expectations for both deployment and value creation.
Strategic priorities have crystallized around artificial intelligence and digitalization as primary levers for competitive differentiation. CEOs identify AI investment as foundational to achieving alpha and driving outsized returns. The focus extends beyond internal operations to encompass how AI can enhance competitive advantages for funds, organizations, and portfolio companies within their portfolios. This represents a material shift in capital allocation priorities toward technology-enabled value creation strategies.
However, this optimistic outlook is tempered by recognition of emerging risks. Cybersecurity has emerged as a persistent organizational concern, with leaders acknowledging a nuanced challenge: AI simultaneously represents both a significant source of operational and reputational risk and a strategic opportunity for risk mitigation and operational efficiency. This "dualism" requires sophisticated governance frameworks and dual-track risk management approaches.
In tandem with technology investments, asset managers and PE firms are prioritizing human capital strategies. After two years of sharpening strategic focus through portfolio refinement and sector concentration, leaders are now emphasizing workforce upskilling, updated workplace models, and strategic partnerships to accelerate AI adoption. This multifaceted approach—combining capital deployment readiness, AI-driven competitive positioning, cybersecurity vigilance, sector specialization, and talent development—reflects a comprehensive strategy to execute meaningful exits and deliver outsized returns in the current market environment.
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