Core Insights - Geopolitical risks have been identified as the primary concern for investors for the second consecutive year, with North American General Partners (GPs) particularly focused on high valuation pressures [9][10] - Overall sentiment among private market investors is optimistic, with expectations for liquidity release through various exit strategies increasing [2][4] Group 1: Investor Sentiment and Strategies - Private market investors exhibit resilience, with strong sentiment towards tangible asset strategies, particularly in infrastructure (93%), private equity (82%), real estate (81%), and private credit (70%) [4] - GPs are optimistic about traditional exit routes expanding significantly, especially strategic sales (80% of GPs likely to adopt this method) and sales led by financial investors (70% considering this option) [5][6] - 83% of Limited Partners (LPs) plan to deploy the same or more capital in private market strategies in 2025, continuing a positive trend from previous years [8] Group 2: Valuation Challenges and Market Dynamics - Valuation remains the biggest challenge for new project investments, with 63% of respondents citing it as a key factor, and 60% indicating it as the main challenge for exits [4][5] - The emergence of new fund managers and the launch of new funds by existing GPs have intensified competition in the fundraising environment [2][5] - LPs are increasingly managing liquidity through secondary markets, with 17% of respondents selling assets in the secondary market this year, up from 11% last year [6][7] Group 3: Asset Allocation and Market Trends - Many LPs are below their target allocation levels across various strategies, with significant under-allocations in co-investments (62% below target) and secondary markets (45% below target) [7] - The interest in evergreen structures is growing, with over 30% of LPs considering or using them for private equity and infrastructure investments [10] - Concerns about geopolitical instability and policy uncertainty dominate investor worries, with North American GPs particularly focused on high valuations as a risk factor [9][10]