Private Markets at a Crossroads: Navigating Growth Amid Market Uncertainty

Private markets have experienced explosive growth, with assets under management doubling over the last decade to $13.1 trillion according to City AM. But with fundraising outpacing exit opportunities and liquidity becoming scarce, experts warn that the sector may be expanding too quickly in an increasingly volatile environment.

“Private equity is approaching a tipping point,” said Philitsa Hanson, Global Head of Product at Allvue Systems, in an interview with City A.M. “Limited partners are not seeing the expected distributions to paid capital due to muted M&A and IPO activity. The situation becomes more complex when you factor in having to rebalance portfolios amid uncertainty over rate cuts, inflation, and geopolitical instability.”

As distributions slow and IPOs remain scarce, LPs are seeking liquidity—and questioning where future returns will come from. Despite these headwinds, capital continues to flow into private markets, raising critical questions about valuations, deal competition, and transparency.

At Allvue, we help clients navigate these complexities by providing the tools and data they need to manage portfolios, liquidity, and performance in real time—supporting smarter decisions as the private markets landscape evolves.