Key Takeaways
- • Global private equity fundraising declined 11.0% to $490.81 billion in 2025, marking the second consecutive year of decline and continuing a multiyear slowdown in capital deployment across buyout, growth, secondaries, general partner stakes, and diversified strategies.
- • Fund launch activity contracted with 364 funds launched in 2025 versus 392 in 2024, while venture capital fundraising fell below $100 billion for the first time since 2015, reaching $86.7 billion as of November 30, 2025.
- • Buyout and growth equity strategies experienced the steepest declines, dropping 20.8% and 17.9% respectively, with buyout funds raising $317.5 billion and growth funds raising $50.1 billion in 2025.
- • Despite persistent headwinds, early recovery signals are emerging: institutional investors are approaching markets with cautious optimism, recent increases in IPO activity provide near-term exit catalysts, and the "worst of the distribution drought" appears to be behind the industry, according to Cambridge Associates.
- • Venture capital funds reached a record 7,598 launches in 2025 despite fundraising weakness, suggesting bifurcation between capital availability and fund proliferation in the venture ecosystem.
Summary
Private equity fundraising deteriorated further in 2025, with global capital raises falling 11.0% year-over-year to $490.81 billion across buyout, growth, secondaries, general partner stakes, and diversified strategies, according to With Intelligence data from S&P Global Market Intelligence. This represents the second consecutive year of contraction, following a $551.16 billion total in 2024. The contraction reflects broader challenges in exit velocity and investor capital availability that have persisted throughout the private markets since 2023.
Strategy-level performance revealed acute pressure in core strategies. Buyout funds experienced the largest decline at 20.8%, raising $317.5 billion, while growth equity strategies contracted 17.9% to $50.1 billion. The number of funds launched across measured strategies fell to 364 in 2025 from 392 in 2024, indicating tightened market conditions for new fund formation. Venture capital fundraising proved particularly challenged, capturing $86.7 billion as of November 30, 2025—marking the first time global venture capital totals have fallen below the $100 billion threshold since 2015. This represents a significant inflection point for the asset class despite the paradox of record fund launches: venture capital funds reached 7,598 launches in 2025, the highest level on record.
However, structural recovery indicators are beginning to surface. Conor Moore, global head of KPMG private enterprise, noted that venture capital fundraising remained "extremely muted" in 2025 but highlighted increasing IPO activity as a potential inflection point for improved exit pathways and subsequent fundraising recovery. Josh Zweig, co-head of North American private equity research at Cambridge Associates, stated that "the worst of the distribution drought of the private equity industry is behind us," noting that institutional investors are now positioning themselves with cautious optimism despite macro uncertainty. These assessments suggest that persistent liquidity pressures and extended holding periods—with average holding periods stretching past five years and over $1 trillion of net asset value trapped in older vintages—may be stabilizing as distributions resume and market conditions normalize gradually.
Strategy-level performance revealed acute pressure in core strategies. Buyout funds experienced the largest decline at 20.8%, raising $317.5 billion, while growth equity strategies contracted 17.9% to $50.1 billion. The number of funds launched across measured strategies fell to 364 in 2025 from 392 in 2024, indicating tightened market conditions for new fund formation. Venture capital fundraising proved particularly challenged, capturing $86.7 billion as of November 30, 2025—marking the first time global venture capital totals have fallen below the $100 billion threshold since 2015. This represents a significant inflection point for the asset class despite the paradox of record fund launches: venture capital funds reached 7,598 launches in 2025, the highest level on record.
However, structural recovery indicators are beginning to surface. Conor Moore, global head of KPMG private enterprise, noted that venture capital fundraising remained "extremely muted" in 2025 but highlighted increasing IPO activity as a potential inflection point for improved exit pathways and subsequent fundraising recovery. Josh Zweig, co-head of North American private equity research at Cambridge Associates, stated that "the worst of the distribution drought of the private equity industry is behind us," noting that institutional investors are now positioning themselves with cautious optimism despite macro uncertainty. These assessments suggest that persistent liquidity pressures and extended holding periods—with average holding periods stretching past five years and over $1 trillion of net asset value trapped in older vintages—may be stabilizing as distributions resume and market conditions normalize gradually.
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