Private funds market grows increasingly unpredictable
Second annual report
2024 Investment Funds Outlook
What’s in this report from Barnes & Thornburg:
Law firm Barnes & Thornburg released its second annual investment funds outlook report, which draws on insights from 138 limited partners (LPs), general partners (GPs) and service providers at leading PE, VC, hedge fund, credit and investment banking organizations that invest in a wide range of industries. This report comes at a time when the private funds market is becoming increasingly unpredictable — and as costs, on all sides of the deal table, are rising.
The report unpacks the changing relationship between LPs and GPs as the former gains leverage, while also delving into some of today’s hottest market trends, including AI, cryptocurrency, private credit and new regulatory challenges.
Some of this year’s key findings include:
- 40% of both GPs and LPs observed increases in expenses over the past 12 months, which is more than twice the number reported last year.
- 96% of LPs say it is important that a fund have a succession plan in place (up from 66% last year), but only 38% of GPs currently have one.
- 77% percent of LPs want the funds in which they invest to use AI for investment analysis and decision-making, but only 26% of GPs have implemented AI functions.
