Close to a third of 87 of UBS’s billionaire clients surveyed by the firm are preparing to reduce their exposure over the next 12 months to private equity funds as higher interest rates and slower exits continue to put pressure on the asset class, according to the a report by Bloomberg citing the bank’s Billionaire Ambitions Report 2025.
At the same time, around half of respondents said they plan to increase investments in direct private equity deals, reflecting a shift towards more selective, hands-on exposure. UBS said entrepreneurial investors in particular are seeing renewed opportunity in direct transactions amid political and economic uncertainty and easing inflation pressures.
The findings come as fundraising conditions remain difficult for buyout firms. Bain & Co estimates that more than 18,000 private capital funds are currently seeking investor commitments globally, creating intense competition for LP capital.
