After a somewhat challenging 12-24 months for private equity and real estate managers, the industry appears to be in recovery mode.
Although there are still a number of potential market and geopolitical headwinds, interest rates are falling, which should make for a more hospitable investment environment for private equity and real estate managers. In addition, investor flows into both asset classes are expected to increase in 2025, a trend that will certainly accelerate as retailisation takes hold.
As managers look to gain a competitive edge and obtain cost synergies, many firms are also doubling down on their investments into disruptive technologies, including Artificial Intelligence (AI), automated Know-Your-Customer (KYC) checks and even asset tokenisation.
Going into 2025, the industry will welcome a more relaxed regulatory regime in the US, although firms will be bracing themselves for a further clampdown in Europe.
JTC takes a deeper look at what could be in store for the industry in 2025.
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