The private markets fundraising climate is expected to improve dramatically through 2025. Private debt and growth equity are emerging as the front running asset classes as investors seek greater diversification across the sector, according to a new study by CSC, the leading provider of global business administration and compliance solutions.

CSC surveyed 300 general partners (GPs) and 200 limited partners (LPs) across North America, Europe (inc., the U.K.), and Asia Pacific to gain a clearer picture of their aspirations and challenges for 2025 and beyond1. The comprehensive findings are detailed in the report, Future Private Capital CFO 2025: Transforming Challenges into Opportunities.

Most GPs (57%) identify private debt as a key investment area, while more than three quarters (81%) anticipate investor demand for this asset class to continue climbing over the next two years.

According to the study, fund managers remain focused on diversification, with growth equity (66%), venture capital (53%), and real estate (51%) emerging as the top three new asset classes they are most likely to target. These findings are consistent with CSC’s previous Future Private Capital CFO study, which highlighted a robust diversification trend.

GPs are most optimistic about fundraising for growth equity, with 84% expecting a surge in LP demand over the next 24 months.

Marshall Saffer, managing director, Funds and Capital Markets, CSC explains, “Persistent higher interest rates have made leveraged buyouts more expensive, prompting many GPs to shift towards growth equity as a preferred investment strategy. This trend is particularly visible in Asia Pacific, where 72% of GPs are considering launching funds in this space.”

When it comes to geographic expansion, North America remains the most attractive market for growth, with 52% of GPs targeting the region. However, Asia (49%) has overtaken Europe (45%) as the second most popular region to pursue new opportunities, reflecting the changing macroeconomic climate.

Agnes Chen, regional managing director, APAC, CSC, adds: “APAC’s rising appeal is a testament to growing investor confidence in the region, marking a shift from previous years. With improving fundraising conditions and a clear move toward diversification, private markets are poised for a dynamic and opportunity-filled 2025. We are seeing robust interest across asset classes and geographies, underscoring the resilience and adaptability of private market investors.”

To receive a copy of CSC’s Future Private Capital CFO 2025: Transforming Challenges into Opportunities report, contact Thomas Dalton at cscteam@cdrconsultancy.com.

1CSC, in partnership with Pure Profile, surveyed 300 GP and 200 LP senior fund professionals operating in Europe, the U.K., North America, and Asia Pacific to better understand their aspirations and challenges for 2025 and beyond. Respondents were equally split between North America, Asia Pacific, and Europe.