We joined over 6,000 peers from 80+ countries at SuperReturn International 2025 in Berlin. The week provided valuable insights from industry leaders during this dynamic period for the private market. Participants had the chance to engage with thought leaders and experts who shared their perspectives on emerging market dynamics, and technological innovations shaping the future of private equity.
Here are my highlights and main takeaways from the week:
*Information in this article should not be interpreted as direct quotes from panelists.
Market Outlook: Managing Through Uncertainty
Macroeconomic factors, including tariff uncertainties and shifting geopolitical dynamics, have significantly shaped deal flow, particularly for U.S. endowments. These challenges have temporarily shifted market advantages toward Europe and Asia. Fundraising efforts are increasingly focused on global business strategies, with a strong emphasis on these regions during times of dislocation.
Sector Opportunities and Strategic Focus- Key sectors such as infrastructure, secondaries, and asset-backed credit are presenting notable opportunities according to panelists. Leading firms are strategically aligning their focus on sectors like energy, artificial intelligence, healthcare, and alternative investments. Long-term planning and comprehensive strategies are critical to navigating the current environment successfully.
Market Sentiment and Confidence Building- While direct impacts from tariffs may be less concerning, indirect effects, such as changes in consumer sentiment and business confidence among CEOs, are becoming increasingly relevant. Despite these uncertainties, industry leaders remain optimistic about the market’s ability to rebound and anticipate a pickup in activity. Themes of longevity, connectivity, and reputation are emerging as key drivers of sustained success in private equity.
Applications for AI
In 2025, AI is poised to significantly impact the private markets landscape. Firms are transitioning from exploring AI to actively implementing it for value creation. This indicates a focus on achieving measurable outcomes from AI investments made in prior years.
AI Applications in Private Equity- Artificial intelligence will help streamline processes and enhance value creation. Use cases include automating back-office operations, optimizing supply chains, and a/b testing investment outcomes. AI may also aid in due diligence by simplifying data analysis and document reviews, potentially accelerating deal evaluations. Portfolio monitoring and optimization may benefit as well, with AI providing real-time performance tracking and risk management.
Customer-Facing Innovations- There is a notable shift toward leveraging AI to improve customer experience. Firms are focusing on AI-enabled products and platforms that drive revenue growth, moving beyond initial infrastructure and model-based applications.
Operational Efficiency- Enhancing operational efficiency is a key priority. AI may be used for predictable value creation and cost-saving investments, particularly in areas such as business process outsourcing and customer service.
Investor Relations and Reporting- AI may simplify investor relations by automating report generation and personalizing communications. This may improve transparency and strengthen relationships with investors.
Data Readiness- The success of AI in private equity heavily relies on high-quality, well-structured data, underscoring the growing importance of robust data governance for fully unlocking AI’s potential.
“DPI is the New IRR”
In 2025, Distribution to Paid-in Capital (DPI) has emerged as a pivotal metric for private equity sponsors and limited partners, reflecting the efficiency of capital deployment and the ability to return cash to investors. As fundraising remains competitive, sponsors are focusing on boosting DPI to attract investors, while LPs are using it as a crucial benchmark for evaluating fund performance and shaping their allocation strategies.
The emphasis on DPI stems from its value in providing a clear and direct measure of liquidity, a critical aspect in the current environment of slow exit activity. By demonstrating tangible capital returns, DPI offers both reassurance to investors and a practical tool for sponsors to showcase successful exits, enabling them to unlock new fundraising opportunities. This focus underlines the growing importance of liquidity management as a driver of private equity success in the years ahead.
Secondaries Summit: Key Takeaways and Trends Shaping the Secondaries Market
As the secondary market evolves, its role in providing liquidity, managing risks, and driving returns will only become more pronounced. The insights from SuperReturn’s Secondaries Summit underscore the importance of innovation, adaptability, and transparency in navigating this complex yet promising landscape.
The Evolving Role of the Secondaries Market- The secondaries market has undergone transformative growth, becoming a critical tool for liquidity management in private equity. A notable trend is the increasing use of secondaries by General Partners, now accounting for almost half of sponsor-to-sponsor M&A activity. This shift highlights how secondaries enable GPs to retain valuable assets while providing liquidity to Limited Partners. LPs have also adopted a more active approach to portfolio management, emphasizing long-term strategies over immediate liquidity concerns. The rise of specialized entrants further reflects the market’s maturity.
CV’s: Transparency and Best Practices- The importance of transparency in GP-led continuation vehicle (CV) transactions was a recurring theme. Adhering to ILPA Guidelines and ensuring fairness in pricing and diligence processes were emphasized as essential for maintaining LP trust. Competitive bidding, intermediary involvement, and fairness opinions were identified as key measures to mitigate conflicts of interest, making GP-leds overall more equitable and accessible.
Diversifying Liquidity Options- The emergence of diverse liquidity solutions, including NAV lending, preferred equity, and continuation vehicles, underscores the market’s adaptability. These options can be utilized at varying stages in a fund’s lifecycle and address wide-ranging investor objectives, creating the potential for mutually beneficial outcomes. However, challenges remain, particularly in diligencing complex structures and aligning them with ILPA conflict management guidelines. Within the venture sector, the secondary market is being leveraged to offer investors opportunities for exit without putting pressure on the managers’ growth objectives in the portfolio.
Future Projections- The secondaries market is poised for significant growth, with projections suggesting it could reach $400 billion in volume by 2030. Innovations in artificial intelligence (AI) and technology are expected to streamline deal processes, enhancing efficiency, transparency, and offering sustainable alternative solutions for the management of investor liquidity.
