Structural Shifts in Fundraising: How the Investment Industry is Adapting in 2025
The fundraising environment in 2025 is testing every corner of the investment industry. While private equity has received much of the attention for its slowdown, venture capital, private credit, and infrastructure are also undergoing profound shifts. The combination of higher interest rates, tighter liquidity, and investor selectivity is reshaping not only how much capital flows, but also where it goes and under what structures.
Venture Capital: From Abundance to Selectivity
The golden era of venture capital, fueled by near-zero interest rates and tech hype, has given way to a more disciplined fundraising cycle. Venture funds raised less than half the capital in 2024 compared to 2021, and the momentum has not fully returned in 2025.
Key drivers include:
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Lower exit activity: IPO windows remain narrow, and acquisitions are subdued, leaving LPs reluctant to commit to new VC funds without distributions.
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Down rounds and valuation resets: Startups that once commanded inflated valuations are repricing, eroding returns and slowing capital recycling.
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LP consolidation: Like private equity, the venture market is consolidating around top-tier managers, particularly those with access to AI, life sciences, and climate tech opportunities.
Still, niches such as AI infrastructure, energy transition, and defense tech are attracting robust commitments, signaling a shift toward sector-specialist funds rather than generalist strategies.
Private Credit: The New Darling
While venture faces headwinds, private credit is thriving. Institutional investors, constrained by muted equity returns and hungry for yield, have poured billions into direct lending and opportunistic credit.
According to industry reports, private credit could surpass $2 trillion in assets under management by 2026, outpacing private equity fundraising in many markets. Features making it attractive include:
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Floating-rate structures, which hedge against inflation and interest rate volatility.
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Diversification benefits, particularly for pension funds and insurers seeking stable cash flows.
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Relative liquidity compared to traditional buyout funds, as loan repayments generate faster distributions.
Fundraising in this sector is being driven by both mega-managers (Apollo, Ares, Blackstone) and boutique specialists focusing on distressed debt and niche lending.
Infrastructure and Real Assets: Long-Term Appeal
Global instability has heightened interest in infrastructure, renewables, and energy transition funds. With governments pushing green investment and institutional allocators seeking inflation-protected assets, infrastructure fundraising has become a bright spot.
Notably:
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Energy transition funds are raising record commitments, especially in Europe, where policy incentives are strongest.
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Digital infrastructure (data centers, fiber networks) is also attracting capital, thanks to the AI boom and cloud expansion.
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Larger funds dominate here as well, since the scale of infrastructure projects requires deep pools of capital.
Secondaries Across Asset Classes
Just as in private equity, secondaries and continuation vehicles are gaining traction across venture, credit, and infrastructure. LPs that need liquidity are increasingly active sellers, while managers see opportunities to extend ownership of high-performing assets. The secondaries market, once niche, has become a stabilizing force for fundraising across the board.
Democratization of Access
Perhaps the most important long-term shift is the opening of alternatives to retail investors. Platforms that allow high-net-worth individuals to invest in venture, credit, or infrastructure funds are growing rapidly. BlackRock, for example, has announced plans to scale its private markets exposure to retail clients, a trend echoed by other asset managers.
This could significantly expand the investor base, but it also brings new challenges in terms of liquidity, transparency, and regulatory oversight.
Conclusion
While private equity continues to face bottlenecks, other corners of the investment industry are evolving. Venture capital fundraising has cooled but is shifting toward sector specialists. Private credit is flourishing as the most attractive asset class of the moment. Infrastructure, especially in energy transition and digital assets, is benefiting from global policy support. Across the board, secondaries and retail democratization are transforming liquidity and access.
Fundraising in 2025 is no longer about riding a rising tide; it is about navigating a more selective, innovative, and diversified capital landscape.
Sources
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