Capital flowing into private markets investments across the globe is continuing on a downward trend across many sectors, according to new industry figures.
PitchBook’s latest Global Private Market Fundraising report shows that in the in the first quarter of 2025 the total capital raised has was $341.4bn.
Overall the capital raised has fallen in each year since a high in 2021, while the number of private market funds has also been on a decline since 2022.
The PitchBook’s data looks at funding levels across nine specific sectors within private markets, including private equity, venture capital real estate, real assets and private debt. It found that the capital raised for six out of these nine separate sector fell year-on-year, while the fund count for each of these sub-sectors each declined across the board.
One of the biggest declines has been in the private equity market, which saw131 funds raise $115.5bin globally. This is significantly below the $178.8 billion raised in Q1 2024 and is projected to fall below 2024 levels on an annualised basis. PitchBook adds that this is particularly notable when considering 2024 was a weaker fundraising year than when compared to recent periods.
Venture capital fundraising also fell with just $18.7bn raised across 231 funds in the first quarter of the year. PitchBook says this marks a sluggish start to the year amid ongoing market turbulence. It adds: “If this pace continues, both the total capital raised and the number of fund closures in 2025 are on track to reach their lowest levels in over a decade.”
However other sectors of the market performed more strongly. Real assets fundraising was off to a “livelier” start in to the year, according to the PitchBook figues, with 18 vehicles receiving $52.4bin in commitments.
PitchBook says if this asset class were to keep up this pace, 2025 capital raised would set a new high-water mark by a wide margin. However it adds this outcome is “improbable”, given the lower-liquidity environment, the denominator effect, and other macroeconomic factors at play.
The figures show that private debt managers held final closes on 42 funds with an aggregate of $68.7bin in commitments. By sub-strategy, direct lending raised the most capital with $27.3bn across 12 funds, headlined by the Ares European flagship direct lending fund that closed on $17.7bn.
Elsewhere PitchBook said that the record level of-fundraising for secondaries in 2024 did not slow going into 2025, with a Q1 figure of $52.1bin raised — nearly half of the full-year total in 2024. Secondary funds are pools of capital raised to acquire existing limited partner (LP) interests in funds, or stakes in general partner (GP)-backed companies. While many secondary managers and funds invest opportunistically across asset classes and geographies, some dedicate funds to specific secondaries strategies, such as real estate, infrastructure or private debt, or specific geographies.
