Private capital fundraising: challenging 2024 hints at areas for growth in 2025

➔ Private capital waits on the buyout breakthrough

It was another tough year for private capital fundraising in 2024, with both the number of funds closed globally and capital committed by LPs down on 2023, Preqin data shows.

However, getting closer to the data shows a refresh is underway, and pockets of positivity are beginning to emerge that will define the next era – 2025 and beyond.

This first part of our Fundraising Primer series will look at top-level data, including global and regional breakdowns of fundraising, asset class, and buyout strategies.¹

Part two, out in March, will drill deeper into some of the themes that dominated fundraising in 2024, such as consolidation and the recent growth in continuation and evergreen funds. It will also include insights from industry experts and explore the private capital themes that will likely play a role 2025.

Beginning 2025 with a global breakdown of fundraising will serve as an update on the journey of growth in alternatives toward the landmark $30tn in assets under management (AUM) by 2030.

➔ Global overview 2024

➝ The number of private capital funds closed globally fell by nearly a quarter (24.3%) from 4,204 in 2023 to 3,184 in 2024 (Fig. 1).

➝ The number of private capital funds closed globally in 2024 was the second lowest in the past decade, with only the 2,809 closed in 2014 lower.

➝ The global number of funds closed in 2024 dropped by 59.4% from the decade high of 7,848 in 2021.

➝ The gap between aggregate capital raised and funds closed in 2023 and 2024 points to increased fundraising consolidation.²

Fig. 1: The number of closed real estate funds holds as other asset classes drop year on year
Global private capital funds closed and aggregate capital raised by asset class

_{Source: Preqin}

➝ The number of closed private equity funds was down by over a fifth (23.5%) from 1,334 in 2023 to 1,021 in 2024.

➝ Real estate showed resilience in 2024, with 664 funds closed, down by just one from 663 in 2023.

➝ The number of venture capital (VC) funds closed was at its lowest since 2014 in 2024, at 1,195.

➝ The number of private debt funds closed fell to its lowest level in a decade in 2024, at 181.

Fig. 2: The drop in number of funds closed in APAC leads global decline
Private capital funds closed and aggregate capital raised by region

_{Source: Preqin}

➝ The number of funds closed in North America, Europe, and APAC dropped by 13%, 21.8%, and 43.5%, respectively, from 2023 to 2024 (Fig. 2).

➝ Globally, aggregate capital raised was down 23.5% from $1.44tn in 2023 to $1.10tn in 2024.

➝ Infrastructure AUM grew by 5.4% between the end of 2023 and the second quarter of 2024, while there was a 5.9% decrease for VC (Fig. 3).

➝ Private equity dry powder fell by 8.2% between the end of 2023 and the second quarter of 2024 (Fig. 4).

Fig. 3: Private capital AUM fell from $14.88tn to $14.76tn in the first half of 2024
Global private capital AUM by asset class

_{Source: Preqin}

Fig: 4: The decrease in global dry powder between 2023 and Q2 2024 could indicate a pick-up in deal flow
Global dry powder by asset class

_{Source: Preqin}

➔ Committed capital

North America-based aggregate capital raised, all private capital

2024: $699bn

2023: $961bn

🡻 Year on year: -27.3%

10-year high: $1.05tn (2022)

Europe-based aggregate capital raised, all private capital

2024: $305bn

2023: $320bn

🡻 Year on year: -4.7%

10-year high: $352bn (2021)

APAC-based aggregate capital raised, all private capital

2024: $65bn

2023: $135bn

🡻 Year on year: -52.1%

10-year high: $448bn (2017)

➔ Private equity: building funds for a buyout breakthrough

Fig. 5: Consistent appetite for buyouts in 2024 despite drop in capital raised from 2023 high
Global number of buyout funds closed and aggregate capital raised

_{Source: Preqin}

➝ The 451 buyout funds closed globally in 2024 almost matched that of 2023 (464) (Fig. 5).

➝ The $382bn aggregate capital raised in 2024 was consistent with 2022 ($394bn), although committed to far fewer funds.

➝ Buyout, growth, and secondaries remain the strategies with the most committed capital, although all three were down in 2024 (Fig. 6).

Fig. 6: Buyouts continue to take a greater share of private equity strategy breakdown
Global aggregate capital raised by private equity funds by strategy

_{Source: Preqin}

Fig. 7: Buyout appetite in North America consistent in higher interest rate environment from March 2022 onwards
Number of North America buyout funds closed and aggregate capital raised

_{Source: Preqin}

➝ North America posts three consistent years of buyout fundraising, with 252 funds closed and $218bn raised in 2024 (Fig. 7).

➝ The number of buyout funds closed in Europe rose to 116 in 2024 from 94 in 2023 (Fig. 8), while the $132bn aggregate capital raised in 2024 was down slightly compared with 2023 ($136bn).

Fig. 8: Europe buyout fundraising remains robust
Number of Europe buyout funds closed and aggregate capital raised

_{Source: Preqin}

Fig. 9: Top 10 private capital funds closed in 2024 (by aggregate capital raised)

_{Source: Preqin Pro}

_{1 Fundraising data alone does not cover issues such as deal volume, exits, or LP liquidity. These points will be explored further throughout the Fundraising Primer series.
2 More on this in part two of the Fundraising Primer series.}

➔ About Primers.

Preqin Primers are a series of short reports illuminating how key players – fund managers, investors, or service providers – are responding to the major trends shaping the alternative investment industry.

Combining key stats from Preqin Pro and interviews with experts, Preqin Primers provide an introductory overview of the trending topics in alternatives, along with industry perspectives from top players.

Preqin Pro can keep you updated on market movements with comprehensive data on institutional investors, fund managers, and service providers, and for each fund and transaction across all major asset classes.

Preqin Primers are a collaboration between writers and researchers to develop and deliver the most timely data on a key subject within private capital. We rely on the precision and expertise of our researchers to gather millions of data points to execute on these simple visual charts. If you'd like to connect with our research team to share data or learn more about our methodology please get in contact here.

_{The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.}