2024年私募市场调研报告 2024 Private Markets Diagnostic Survey Charting New Routes

anAltematives

Charting

NewRoutes

2024PrivateMarkets

DiagnosticSurvey

2024PRIVATEMARKETSDIAGNOSTICSURVEYOCTOBER2024

Macroeconomics

Privatemarketinvestorsaremoreoptimisticaboutinvestmentopportunitiesthantheywerelastyear,asinflationhasmoderatedandvaluationshavebeguntoadjust.Whileconcernsaboutrecessionriskandinflationhavetempered,greaterfocusisbeingplacedon

geopoliticalconflictsandstill-elevatedvaluations.

Allocations

LimitedPartners(LPs)continuetobuildtowardtheirprivatecreditandinfrastructuretargetsasprivatemarketallocationsbecomemorediverse,andtheyareincreasingdeploymentlevelsbutfocusingonfewerrelationships.ThebalanceofLPsremainsunder-allocatedacrossprivatemarketstrategies,withchallengesaroundover-allocationstoprivateequitylargelycenteredwithLPsintheAmericas.

ValueCreation

GeneralPartners(GPs)arefocusedondrivingrevenuegrowthattheirportfoliocompaniesandlookingtowardsinterimliquiditysolutions,includingcontinuationvehiclesanddividendrecaps,todriveliquidityforLPs.Buyer/sellervaluationgapsarehinderingtransactionactivityonboththeacquisitionanddispositionsides,withmacrouncertaintyalsoconstrainingexits.

IndustryEvolution

Theprivatemarketsindustrycontinuestoevolve,withGPsexpandingtheirofferingsandnearlyathirdleveragingorevaluatingtheuseofanequitystakesaletocapitalizethemanagementcompany.LPsaremovingbeyondthetypicaldrawdownstructure,withinterestinsemi-liquidvehiclesexpandingtoincludeequitystrategies.

Sustainability

SustainabilityremainsakeyfocusforlargerLPsandthoseoutsidetheAmericas,whilemorethan50%ofLPsintheAmericasdonothavesustainableinvestmentgoals.GPs,focusedonraisingcapitalglobally,broadlyreportgreaterprogressinachievingsustainableinvestinggoals.

GOLDMANSACHSASSETMANAGEMENT2

2024PRIVATEMARKETSDIAGNOSTICSURVEYOCTOBER2024

GOLDMANSACHSASSETMANAGEMENT3

Introduction

AfterfindinglastyearthatinvestorsandmanagerswereStayingtheCourseinalternatives,the2024PrivateMarketsDiagnosticSurveyshowsthattheyarenowChartingNewRoutesacross

adynamicinvestmentlandscape.Optimismisgrowingacrossassetclasses,withconcerns

aroundmacrofactorsincludingrecession,rates,andinflationfalling,whilerisksdueto

geopoliticaltensionsandelevatedvaluationswereseentoincrease.Asconfidencegrows,

investorsarebuildingallocationsintonewareasofprivatemarkets,drivingunder-allocationsformanyLPs—particularlyingrowingareassuchasprivatecreditandinfrastructureaswellasdifferentaccesspointsincludingsecondariesandco-investments.

Liquidityistopofmindformanyinvestors,andfundmanagersareincreasinglyexploringliquiditysolutionsasexitscontinuetobehinderedbylingeringmacrouncertaintyand

valuationdisconnectsbetweenbuyersandsellers.LPsarealsolookingforgreatercontrolovertheirliquidityprofiles,buildingallocationsinsemi-liquidvehiclesacrossassetclasses,aswellasincreasingengagementwiththesecondarymarkettoexploreliquidityoptions.

Theindustrycontinuestoevolve,adaptingtothenewinvestingenvironment,aswellasnewtechnologies.AIwasagainhighlightedasthetopdriverofindustryevolution,andwithhigherratesandelevatedvaluations,GPsarefocusedongrowingtop-linerevenuetobuildvalue

attheirportfolioinvestments.Managersarealsoexpandingtheirproductofferingsand

fortifyingtheirbalancesheetswithoutsidecapital,asindustryconsolidationbecomes

amorecommonthemeandLPscontinuetofocusoninvestingcapitalwithfewermanagers.

Asfundraisingdynamicsremaininflux,LPsarescrutinizingfundtermsandfeesmorecloselywhileGPsareemphasizingtheirsectorexpertiseanddifferentiatedsourcing.LargerLPsarefocusedonco-investmentopportunities,customizedsolutions,andsustainability—thoughmorethanhalfofinvestorsintheAmericaslacksustainableinvestmentgoals.GPs,onthe

otherhand,showstrongadoptionofsustainability,particularlyastheyseekoutLPsinEMEAandAsiawheresustainableinvestingisingreaterfocus.

Sentimentisslowlyshiftingfromcautioustocourageous,withbothinvestorsandfund

managersincreasinglywillingtoexplorenewstrategiesandinvestmentapproaches.

Enteringthisnewterrain,investorswillneedtoremainvigilantandensuretheyhavethetools,resources,andexpertisetoforgeahead.

2024PRIVATEMARKETSDIAGNOSTICSURVEYOCTOBER2024

SECTION01

Macroeconomics

“Investorsentimentisbroadlyimproving,eveninassetclassessuchasrealestate,whichfacedheadwindsoverthelasttwoyears.LPfocus

onmacrorisks,whichweretopofmindlast

year,haveeasedwithinflationmoderatingandratescomingdown.Concernsaboutinflated

valuations,however,andassociatedimpactsontradingvolumesremain.”

JeffFine

GlobalCo-HeadofAlternativesCapitalFormation,GoldmanSachsAssetManagement

60%

ofrespondentsbelievethatgeopoliticalconflictisoneofthetopthreeinvestmentriskstoday.

GOLDMANSACHSASSETMANAGEMENT4

01|MACROECONOMICSOCTOBER2024

GOLDMANSACHSASSETMANAGEMENT5

Sentimentisbroadlypositiveacrossassetclasses,withGPs

takingamoreoptimisticviewthanLPs.Netsentiment(%

respondingBetterless%respondingWorse)isslightlypositiveevenforrealestate—themostchallengedassetclass—with

38%ofLPsseeingbetterinvestmentopportunitiescomparedto31%seeingworse.Investorscontinuetobuildconfidencein

privateequityandremainbullishoninfrastructure,believingtheassetclasscancontinuetodeliverconsistentperformancethroughthemarketcycle.Creditisbeginningtofalloutof

favorwithnearlyaquarterofLPs,butonnetinvestorsremainpositiveontheassetclass.

Investmentoutlookcontinuestoimproveacrossprivatemarketstrategies

Howdoyoufeelaboutcurrentinvestmentopportunities,comparedtoayearago?

AbouttheSameSomewhatWorseMuchWorse

MuchBetter3%

17%

SomewhatBetter

1%

3%

1%

5%

7%

8%

5%

6%

19%

25%

23%

26%

33%

30%

25%

55%

15%

37%

Respondents(%)

32%

40%

31%

40%

44%

52%

37%

27%

34%

34%

20%

23%

13%

8%

7%

6%

9%

4%

LPGPLPGPLPGPLPGP

PrivateEquityPrivateCreditRealEstateInfrastructure

01|MACROECONOMICSOCTOBER2024

GOLDMANSACHSASSETMANAGEMENT6

Geopoliticalconflictrosetobetheriskfactormostinfocus,

whileconcernaboutmacrorisksincludinginflation,recession,

andinterestrateshasdeclined.Asidefromgeopolitics,inflated

valuationssawthebiggestincreaseinperceivedrisk,movingfrom

#6in2023to#2.MuchoftheconcernaboutvaluationscamefromLPs,whileGPsaremuchmoreconcernedaboutinterestratesandregulationthanLPs.

Geopoliticalconflictistopofmind,overtakingrecessionrisk

Whatdoyoubelievearethegreatestinvestmentriskstoday?

Selectuptothreeresponses.

20232024

GeopoliticalConflict InflatedValuationsEconomicRecessionInterestRates

InflationCostofFinancing

LiquidityExcessofDryPowder

RegulationAvailabilityofFinancingClimateRisk

BankInstability

46%

40%

48%

26%35%

37%

32%

43%

26%

23%28%

12%

18%

8%

17%

13%

8%

10%

13%

7%

2%

7%

10%

AllRespondents(%)

60%

LPsarerelativelymorefocusedondownsiderisksfromrecessionandinflatedvaluations,whileGPsaremoreconcernedwithratesandregulation

Whatdoyoubelievearethegreatestinvestmentriskstoday?

Selectuptothreeresponses.

21%

InterestRatesRegulation

MoreGPFocus

AvailabilityofFinancingBankInstabilityLiquidity

ClimateRiskGeopoliticalConflictExcessofDryPowder CostofFinancingInflation

EconomicRecessionInflatedValuations

14%

7%

1%

1%

1%

6%

7%

10%

10%

10%

MoreLPFocus

19%

DifferenceinLPvsGPRespondents(%)

02|ALLOCATIONSOCTOBER2024

SECTION02

Allocations

“WhilesomeLPsareexperiencing

over-allocationissues,investors

broadlyremainunder-allocatedacrossprivatemarketsandcontinuetoshowstrongappetitefornewaccesspoints,includingco-investments,secondaries,andsemi-liquidvehicles.”

StephanieRader

GlobalCo-HeadofAlternativesCapitalFormation,GoldmanSachsAssetManagement

79%

ofLPsareincreasingormaintainingcapitaldeployment.

GOLDMANSACHSASSETMANAGEMENT7

02|ALLOCATIONSOCTOBER2024

GOLDMANSACHSASSETMANAGEMENT8

Relativetargetallocationswerelargelyunchangedfromlast

year’ssurvey,butoverallgrowthinportfolioassetshasledto

anuptickinabsolutetargetsthroughareverse-denominator

effect.AlargeproportionofLPsinitiatedallocationsinnew

strategiesaswell.Asaresult,despiteanindustry-wideslowdownindistributions,LPsonnetremainunder-allocatedacrossprivatemarketstrategies.LPstendtobeunder-allocatedinassetclasseswheretheirallocationsarelikelytobenewerandstillgrowing;

morethanhalfofLPswithallocationstoprivatecreditare

under-allocated,andover40%withinfrastructureallocations

arebelowtheirtargetswithahigherproportionofLPsallocatingtobothstrategiescomparedtolastyear.Ontheotherhand,

over-allocationswerelargelyconcentratedamongstLPsintheAmericasintheirprivateequitybooks,whereallocationsarelikelymoremature.

LPscontinuetoseekoutdiversificationofprivatemarket

accesspoints,needingadditionalexposuretosecondariesand

co-investmentstomeettargetallocations.Inco-investments

inparticular,LPsmaybeconstrainedbymorethanjustthe

opportunityset,with“investmentteamcapacity”and“operationalcapacity”viewedastheirtwobiggestchallenges(seepage22).

RoughlyhalfofLPsarenowallocatingtosecondariesandco-

investmentsrespectively,upsignificantlyfromlastyear’ssurvey.

LPsonnetremainbelowallocationtargetsacrossprivatemarketstrategies,withalargeuptickinprivatecreditunder-allocation

Whatisthecurrentallocationstatusforthefollowingstrategies?

nOver-Allocated.AtTarget.Under-Allocated.N/A

14%

26%

15%

8%

25%

LPRespondents(%)

50%

50%

32%

32%

46%

16%

40%

23%

35%

35%

32%

3%

33%

26%

1%

20%

25%

9%

6%

PrivateEquityPrivateCreditRealEstateInfrastructureCo-InvestmentsSecondaries

20232024

Net%ofLPsWithAllocationsWhoAreUnderallocated*

44%

42%

26%

20%

30%

39%

7%11%

47%

21%

8%

14%

LPRespondents(%)

*ExcludesN/Aresponses.

Co-Investments

Secondaries

Infrastructure

RealEstate

PrivateCredit

PrivateEquity

GOLDMANSACHSASSETMANAGEMENT9

LPRespondents(%)

Privateequityisthemostover-allocatedstrategy,drivenbyLPsintheAmericas

Whatisthecurrentallocationstatusforprivateequity?

Over-AllocatedAtTargetUnder-AllocatedN/A

9%10%

27%

48%

28%

46%

32%

36%

19%

10%

AmericasAPACEMEA

6%

30%

Asaresultofbroad-basedunder-allocation,39%ofLPsareincreasingdeploymentwhileonly21%arereducingorputtingdeploymentonhold,downfrom39%lastyear.Thetheme

ofconsolidationcarriedoverfromlastyear’ssurvey,witha

continuedtrendtowardsmakingfewercommitmentsand

investingwithpre-existingrelationships;thependulumhasswungbacktowardslargercommitments,butwethinkthisislikely

attributabletomeanreversionratherthananemergingtrend.

LPRespondents(%)

Deploymentexpectationshavestabilizedandareincreasing,followingapullback

Whatareyourexpectedoverallcapitaldeploymentplanscomparedtolastyear?

DeploymentonHoldSignificantlyLessSlightlyLessAbouttheSameSlightlyMoreSignificantlyMore

7%

21%

26%

33%

40%

23%

13%

12%

4%

20232024

13%

02|ALLOCATIONSOCTOBER2024

GOLDMANSACHSASSETMANAGEMENT10

Larger/

More/New

Smaller/

Fewer/Existing

LPscontinuetoconsolidatecommitments

Howwouldyoucharacterizecommitmentscomparedtolastyear?

■Existing/Smaller/Fewer.NoChange■New/Larger/More

Net%ofLPRespondentson

FundCommitments/GPRelationships

Relationships

-3%-6%

-11%

-12%

Commitments

-17%

CommitmentNumberofRelationship

SizeCommitmentsFocus

21%57%23%

29%52%19%

27%49%24%

LPRespondents(%)

20232024

2%

Size

LPsindicatedtheyweremostfocusedondeployingcapitalintocreditstrategies,whereunder-allocationwasmostpronounced,withoverathirddescribingsomeformofcreditinvestingas

aprimaryfocusinanopen-endedquestion.Privateequity

wasthenextfocusarea,highlightedbymorethan20%ofLPs,followedbyrealestateandinfrastructurewithabout10%ofLPs,respectively.

LPsaremostfocusedondeployingcapitalinprivatecredit,wheretheyremainunder-allocated

Whereareyoumostfocusedondeployingcapitaloverthenext12months?

PrivateCredit

21%

11%

11%

4%

2%

32%

LPRespondents(%)

Chartshowsanaggregationofopen-endedresponsesanddoesnotsumto100%duetomultiplestrategiesbeingindicatedbysomerespondents.

PrivateEquity

RealEstate

Infrastructure

NoSpecificFocus

Sustainability

Other

34%

GOLDMANSACHSASSETMANAGEMENT11

Asthedenominatoreffecthaseasedandallocationshave

somewhatrecalibrated,GPsaremoreoptimisticabout

fundraisingthaninlastyear’ssurvey,withexpectationsforlarger

fundsizestep-upsandlesstimespentinthemarket.Still,raisingLPcapitalremainsthemainoperationalconcernforGPs(see

page22).

GPsseeanimprovingfundraisinglandscape

Pleasedescribeexpectationsforthetimingofyournextflagshipfundraise.

Pleasedescribeexpectationsforthedurationofyournextflagshipfundraise.

20232024

GPRespondents(%)

50%

34%

26%

20%

18%

9%

6%

36%

WillBe

FundraisinginNext12Months

WillBe

Fundraisingin12+Months

NotSure

ofNext

Fundraise

CurrentlyFundraising

66%

35%

23%

11%

6%

59%

ShorterThanPreviousFund

LongerThanPreviousFund

AbouttheSameas

PreviousFund

Pleasedescribeexpectationsforthesizeofyournextflagshipfundraise.20232024

30%

32%32%

GPRespondents(%)

27%

21%

12%

11%

5%

3%

2%

25%

1%–20%Larger

ThanPreviousFund

51%–100%Larger

ThanPreviousFund

SmallerThanPreviousFund

MoreThanDoublePreviousFund

21%–50%Larger

ThanPreviousFund

Sameas

PreviousFund

GOLDMANSACHSASSETMANAGEMENT12

Despitethecommonrefrainof“DPIisthenewIRR”andaclearfocusfromLPsondistributionrates,MOICagainrankshighest:

LPsviewthisperformancemetricasmostimportantinevaluating

GPtrackrecords.1Still,ahandfulofrespondentswrote-insome versionofdistributionsorliquidityasbeingmoreimportantthanayearagoinevaluatingGPs.

LPRespondents(%)

LPscontinuetovalueMOICandIRRmorethanDPI

RankthefollowingperformancemetricsinorderofimportanceinyourevaluationofGPtrackrecords

123%

16%

27%

39%

27%

31%

37%

12%

IRRDPI

18%

5%

7%

PME

Ranking:

43%

69%

37%

18%

4

3

9%

MOIC

1.Distributed-to-paidin(DPI),Internalrateofreturn(IRR),Multipleoninvestedcapital(MOIC),PublicMarketEquivalent(PME).

03|VALUECREATIONOCTOBER2024

SECTION03

ValueCreation

“Atatimewhenexitshaveslowedandsomeperceivevaluationsasbeinginflated,GPsarefocusedontop-linegrowthastheprimary

sourceofvaluecreation.”

AmyJupe

GlobalCo-HeadoftheXIGPrivateEquityPrimariesandGlobalHeadofXIGPrivateCredit,GoldmanSachsAssetManagement

63%

ofGPsexpecttodrivevaluecreationbyincreasingorganicrevenuethroughexistingchannels.

GOLDMANSACHSASSETMANAGEMENT13

03|VALUECREATIONOCTOBER2024

GOLDMANSACHSASSETMANAGEMENT14

Lastyear,GPsforesawsignificantchangesintransactionmetrics,includingrisingissuanceandfallingvaluations—mostofwhich

cametofruition.Thisyear,theiroutlookismorebenignbutskewedtowardsincreasesinissuanceanddefaultsacrossassettypes.

GPsexpectmoreactivecapitalmarkets,butalsohigherdefaults

Whatareyourexpectationsforthefollowingtransactionmetricsayearfromnowcomparedtotoday?

MuchLowerSomewhatLowerAbouttheSameSomewhatHigherMuchHigher

51%

43%

30%

43%

30%

32%

32%

30%

GPRespondents(%)

RealEstateDefaultRateCorporateDefaultRate EquityContributions PrivateDebtIssuanceHighYieldIssuance

LeveragedLoan/BankIssuanceOverallLeverageEBITDAMultiples

3%5%

41%

49%

51%

41%

46%

43%

49%

54%

16%

16%

16%

14%

14%

8%

8%

8%

3%

3%

3%

3%

3%

3%

5%

5%

Despitetherecentdeclineintransactionmultiples,valuations

arestillwidelyviewedasinflated.Valuationsandsourcingare

seenasthebiggestimpedimentstodealmaking,withmacro

uncertaintyandidentifyingpotentialexitstrategiestiedforthird.Withtransactionmultiplesunlikelytoseeameaningfuluptick,it

willlikelytakeadditionaltimetobolsterfundamentalsandenhanceoperationstosupportequityvalues.GPsseerevenuegrowth(bothorganicandinorganic)asthebiggestfocusinthisregard.When

itcomestoexitchallenges,GPsweremorepronetohighlightthemacroenvironment,followedbyvaluationsandfinancingcosts.

GPsarelookingtorevenuegrowthastheprimarydriverofvaluecreation

Whatareyourmainareasoffocustodrivevaluecreation?

Selectuptothreeresponses.

IncreaseOrganicRevenueThroughExistingChannels

IncreaseOrganicRevenueThroughNewChannelsInorganicRevenueGrowth/M&A

ImproveMarginsThroughEfficiency/TechnologyAddNewProducts/Services

ImproveMarginsThroughCost-Cutting EnhanceCapitalStructureAddOperatingPartners/Resources

GPRespondents(%)

17%12%

12%

46%

63%

37%

27%

51%

GOLDMANSACHSASSETMANAGEMENT15

Valuationshavebeenakeyheadwindforbothcapitaldeploymentandexitactivity

Whatarethegreatestchallengesfordeployingcapitaltoday?

Selectuptothreeresponses.

60%

56%

GPRespondents(%)

26%26%

14%

16%

Valuationsin

Market

SourcingAttractiveOpportunities

Macro

Uncertainty

IdentifyingPotentialExitStrategies

CostofFinancingAvailabilityofFinancing

Whatarethegreatestchallengesforexitinginvestmentstoday?

Selectuptothreeresponses.

58%

53%

GPRespondents(%)

40%

28%

19%

MacroUncertaintyValuationsinMarketCostofFinancingPrefertoHoldtoAvailabilityofFinancingBuildFurtherValue

GOLDMANSACHSASSETMANAGEMENT16

Overall,expectedliquidityrouteswerelargelyconsistentwith

lastyear’ssurvey,particularlywhenseekingafullexit.Strategicsalesarestillexpectedtobethemainexitroute,followed

closelybysponsorsales,buttherewaslessoptimismfortheIPOmarket.WithroughlyaquarterofGPssayingtheyprefertohold

investmentstobuildfurthervalue,therehasbeenheighteneddemandforinterimliquiditysolutions,withdividendrecaps

becomingthemostpopularoption.Continuationvehicles(CVs)andpreferredequityarealsobeingconsideredbynearlyhalfofGPs,whileNAVfacilitiesarelessinfocus.

Assetsalesremainthemostpopularliquidityroute,butinterimliquidityoptionsarebecomingmorepopular

HowdoyouexpecttousethefollowingsourcestogenerateLPliquidityoverthenextyear?

LikelytoUseSomewhatLikelytoUseUnlikelytoUse

19%

30%

53%

44%49%

GPRespondents(%)

26%65%

28%

44%33%26%

56%

23%

42%

19%21%

12%12%

StrategicSaleSponsorSaleDividendRecapContinuationVehiclePortfolioFinancingIPO

Whatareyourexpectationsforyourfund’suseofthefollowingoverthenext12months?

LikelytoUtilize

UnderConsideration

UnlikelytoUtilize

16%

21%

13%

44%

16%

GPRespondents(%)

53%

56%

63%

55%

63%

26%

47%

72%

63%

28%

16%

26%

22%

16%

26%

21%

18%

9%

11%

20232024202320242023202420232024

ContinuationFundPreferredEquityNAVLendingSubscriptionLines

GOLDMANSACHSASSETMANAGEMENT17

CVshaveseenheightenedadoptionwithsustainedhighlevelsoftransactionactivity,andtheproportionofGPs“likely”tousethemoverthenext12monthsroseabove20%—morethan

doubleourpriorsurvey.LargelyasaresultofCVs,secondarymarketactivityin2024ispacingtowardsrecordlevels.Roughly

halfofrespondentshaveexposuretothemarketasLPsin

secondaryfunds,andwesawaslightuptickintheproportionofrespondentsconsideringengagingassellersonthesecondarymarketoverthenext12months.

HalfofLPshaveexposuretothesecondarymarketthroughfundinvestments

Pleasedescribeyourengagementwiththesecondaymarketasa________?

wCurrentlyEngaged.NotEngagedRecently,ButConsideringinNext12Months.UnlikelytoEngage

30%

LPRespondents(%)

57%

60%

20%

22%

50%

29%

21%

11%

FundInvestorDirectBuyerSeller

04|INDUSTRYEVOLUTIONOCTOBER2024

SECTION04

IndustryEvolution

“GPsareexpandingtheirproduct

offeringsbothintermsofstrategiesandstructures,andareoftenlookingtooutsidecapitaltohelpfundtheseexpansionplans.”

AliRaissi

GlobalCo-HeadPetershillGroup,

GoldmanSachsAssetManagement

60%

ofGPshaveexpandedtheirproductofferinginthelasttwoyears.

GOLDMANSACHSASSETMANAGEMENT18

04|INDUSTRYEVOLUTIONOCTOBER2024

GOLDMANSACHSASSETMANAGEMENT19

WhileArtificialIntelligence(AI)continuestobethemain

perceiveddriverofindustryinnovationintheyearsahead,

followedbytheretailmarket,thebiggestchangefromlastyear’ssurveycamefromsustainability,whichdroppedbyabout10

percentagepoints.Industryconsolid