Private market mandates surged to 50% of institutional searches in the 12 months to March 2025, driven by strong demand for private debt, infrastructure, and semi-liquid vehicles, according to bfinance’s latest Manager Intelligence and Market Trends report.
While traditional private equity strategies remained subdued, investors demonstrated increased appetite for asset-backed lending and core infrastructure — particularly in vehicles offering built-in liquidity and stable yield. Infrastructure mandates rose to 13% of all private markets searches, highlighting a shift toward tangible assets with defensive characteristics.
“The private markets rotation reflects a growing investor preference for strategies that combine resilience with capital efficiency,” said Oliver Wade, Associate at bfinance. “Private debt — especially in flexible, multi-strategy formats—is proving particularly attractive in an uncertain rate environment.”
Private equity search activity did continue, albeit at reduced levels compared to the 2022 peak. Meanwhile, firms deploying capital in semi-liquid credit strategies or targeting mid-market infrastructure are seeing increased interest from institutional allocators seeking inflation protection and predictable cash flows.
This shift coincides with broader rebalancing within illiquid allocations. As part of this recalibration, some investors are pivoting toward more targeted mandates across sectors and geographies, including increased interest in emerging markets and global equity for public market exposure.
The report underscores how private equity and private credit strategies are being refined to meet the evolving needs of long-term capital in a complex market backdrop.
