Sector Performance

In 2025, the private capital sector demonstrated resilience and a gradual return of investor confidence, despite fundraising headwinds marked by longer cycles and heightened investor selectivity. Conditions improved as the year progressed, supported by easing interest rates and stabilizing valuations.

Deal activity strengthened in the second half of the year as managers increased deployment of committed capital, with transactions becoming more focused and disciplined. Capital flowed to experienced managers and sectors with strong cash-generating capacity. Secondary transactions grew in prominence, providing liquidity amid longer holding periods and muted traditional exit opportunities.

Hogan Lovells Activities

Our Private Capital team partnered with clients across the investment lifecycle, including pre-fundraising, fund formation, capital deployment, financing, and exit. We published thought leadership on key issues shaping the industry, including NAV facilities, private credit, GP stakes, preferred equity, and the energy transition, as well as our perspectives on insurance, defense, and sports investment.

We hosted and participated in client activities around the globe, bringing together private capital investors and legal professionals to share insights and perspectives on market developments. These included events in France, Germany, Hong Kong, Italy, the United Kingdom, the United States, and Singapore, strengthening our relationships and connections across the global private capital ecosystem.