During 2024, investment and divestment activity rebounded strongly, registering increases of 37% and 34% respectively. This improvement was accompanied by macroeconomic stabilization, a decrease in interest rates, and growing interest from managers to reactivate dealmaking. However, fundraising continues to lag, affected by low liquidity among institutional investors and pressure on expected returns.

The report also highlights that the industry is evolving rapidly, driven by the need for differentiated strategies and innovative tools to generate liquidity. Although traditional exits are still limited, alternative mechanisms such as recapitalizations, secondary sales, and NAV financing loans have intensified. Additionally, the growth of co-investments and private credit reflects how managers are adapting their operating model to boost capital flow and answer to investor demands. 

Looking ahead to 2025, Bain warns that the recovery will not follow historical patterns. Pressure on margins, the rising cost of capital access, and structural market changes will require funds to have a differentiated and clearer value proposition than ever before. The environment favours managers with proven track records, scale, and specialization, while less established managers will need to redefine their approach to remain competitive. 

You can read the full Bain & Company report here