Asset Allocation: Outlook 2025

This annual report examines the central themes of 2025 that will feed into long-term asset allocation decisions.

• As private equity deal activity builds on the back of monetary loosening, more exits could unlock liquidity for private equity allocators

• Potential for upward momentum on venture capital allocations after a two-year performance trough and more favourable terms for VCs

• Downward pressure on yield – stemming from interest rate cuts and tighter deployment conditions – could lead to a more tempered return environment for private debt

• Allocators may look to real estate debt, private debt, and infrastructure to supplement income generation, particularly as real estate equity cap rates face downward pressure

• Stability of infrastructure returns attractive to allocators, but attention may shift away from renewables and toward traditional energy and telecoms