Explore the trends defining investor priorities in 2025
Private markets have moved mainstream and investor expectations are rising. Our research reveals that institutional investors are asking more from their allocations than ever before – more risk management, higher returns and more sophisticated solutions.
33% + Over a third of investor portfolios are allocated to private market investments
Over a third of investor portfolios are allocated to private market investments, with planned allocations rising slightly over the next three to five years. The five major private market asset classes – private debt, unlisted real estate, infrastructure debt and equity, and private equity – continue to be mainstays in institutional investment portfolios.
200 bps Higher net return expectations year-on-year for infrastructure equity
Infrastructure equity net return expectations hit 13.4% in 2025, up 200 basis points (bps) YoY, nearing private equity levels at 13.65%. Infrastructure debt also rose, climbing to net 9.6% (+170bps YoY). We believe private debt continues to appeal due to its expected ability to deliver attractive risk-adjusted returns at just under 10%.
52% Of investors say new technologies and power demand are the top megatrend
More than half of investors view new technologies such as AI, robotics, loT, digitisation and automation and the resulting increased demand for power to support them as the megatrend most impacting allocation decisions. This is followed by increased demand for sustainable and resilient infrastructure (48%).
Key findings from the 2025 Private Markets 700 Research
Investors are embracing more in an era of expanding possibilities in private markets. Use the + icon to discover the themes revealed by the 2025 research.
Diversification redefined
The many roles for private markets
Infrastructure viewed as a growth engine, with defensive qualities
Sustainability stays strong – and performance critical
Appetite is high, deals must follow
Expected net returns from private markets have risen in 2025
Year-on-year return expectations for Private Markets
The Private Markets 700 barometer tracks and compares year-on-year responses from 700+ institutional investors globally. In 2025, private markets are seeing net growth across all asset classes compared to 2024. Investors expect the highest returns from private equity - but infrastructure equity is quickly catching up.
Regional trends in private markets in 2025
The Private Markets 700 analysis dives deep into each region to highlight where investors see new opportunities across the private markets landscape.
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79% of investors say federal policy and regulation are influencing their decisions to invest in the US – yet despite recent policy shifts, 63% still believe the energy transition is unstoppable.
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North American investors are the most likely to target higher risk/return segments, with 48% of investors in infrastructure equity citing higher returns as their motivation.
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North American investors’ net return expectations for infrastructure equity increase to 13.5% (up from 11.8% in 2024), nearly on par with private equity at 13.9% (down from 14.5% in 2024). For infrastructure debt, expected net returns have risen to 9.7%, up nearly 2 percentage points, year-on-year.
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Europe (ex-UK) has emerged as a clear leader in attracting capital for infrastructure equity and debt, real estate and private credit. Investors cited the region as a priority for infrastructure equity (44%, up from 33%) and infrastructure debt (50%, up from 35%).
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Infrastructure is taking centre-stage with nearly two-thirds of respondents saying changing regulation will favour regional infrastructure investment, and 69% believe that higher risk/return solutions will draw in more private capital.
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APAC investors are the most likely to invest in infrastructure, with 67% of respondents investing in infrastructure over the next five years – compared to 60% globally.
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There are regional nuances: those in APAC (ex-Australia) have a strong focus on energy efficiency and digital infrastructure, while those in Australia view social impact as a defining investment factor.
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70% of APAC investors (ex. Australia and New Zealand) believe the private sector must play a bigger role in financing infrastructure investment, compared to 61% globally.
Join private markets experts for a webinar
Explore the market forces behind the data
Register for our webinar this November exploring investors’ new ambitions for their private market allocations—and the megatrends driving that thinking. Equipped with new research from our in-market “pulse survey,” and backed by 30 years of know-how, join IFM’s economists and private markets experts as they apply the findings to today's landscape, providing actionable investment insights.
Explore the market forces behind the data
Register for our webinar this November exploring investors’ new ambitions for their private market allocations—and the megatrends driving that thinking. Equipped with new research from our in-market “pulse survey,” and backed by 30 years of know-how, join IFM’s economists and private markets experts as they apply the findings to today's landscape, providing actionable investment insights.
Access the 2025 Private Markets 700 research
Read our 2025 Private Markets 700 Research
Investors are asking more from their private markets allocations – more risk management, higher returns and more sophisticated solutions. Explore private markets’ era of expanding possibilities, according to 700+ institutional investors.