IPEM Cannes: What’s in store for private capital in 2025

This year, the BVCA’s Industry Development team attended IPEM in Cannes to connect with members and non-members from across the private capital industry, share insights, further understand industry trends, and represent the industry. Over 3,500 participants from more than 1,300 firms attended and we were joined by LPs and GPs across the three days. The BVCA hosted a dinner to discuss our recent and upcoming work and demonstrated how we can continue to further support the ecosystem.  
 

Private Capital Headwinds and Tailwinds 

Despite geopolitical risks, the macro-economic environment, fundraising challenges and concerns about asset valuations, investors and private equity fund managers are optimistic about 2025. The sentiment at IPEM Cannes was clear - the industry is structured for long-term investment and growth, and is therefore resilient despite interest rate cycles, inflation and wider economic factors. Industry figures noted that wealth investors and alternative fund structures are growing in importance, helping to boost fundraising and ease liquidity pressures.  

At the conference, during a live poll, attendees were asked what they believe will be the most significant geopolitical factors influencing private equity returns over the next 3-5 years. 50% of the audience identified increased trade protectionism, tariffs, and changing foreign investment policies as the greatest risk, above geopolitical tensions, supply chain disruptions, or changes to sustainability and climate related policies. 
 

IPEM Pan-European Private Equity Survey 

The BVCA, alongside 13 other national private equity associations, supported IPEM on its seventh annual survey which was launched at the conference. The survey is designed to gauge the mood of European GPs for the year ahead and capture views on the economic, business and regulatory climate. 158 fund managers responded to this year’s survey which also captured views on the democratisation of private equity investment. It found: 

• Respondents expected positive market conditions in 2025. 92% believed portfolio management would improve and 85% said dealmaking and capital deployment would improve, helped by adjustments to valuations, however exiting and fundraising would continue to be challenging.  

• The most attractive sectors to invest in were business services, pharma and healthcare, and information technology.  

• Looking ahead and focusing on access to capital, 75% of GPs said they are witnessing a change in their LP base as more individual and retail investors allocate to private capital. The democratisation of the sector is seen as a significant fundraising opportunity and 76% of firms are planning or already have a dedicated private wealth fund.  
   

Looking further ahead 

Both the conference and survey highlight that the private capital landscape is evolving and responding positively to disruption. This presents both challenges and opportunities which the industry will navigate. The latest data from Preqin states the industry’s assets under management are set to reach $12tn by the end of 2029. This suggests that while it is unlikely that the industry will grow at the same pace as recently witnessed in the era of low interest rates, it is on track to continue growing in the years ahead. 

Authored by Laura West
Head of Industry Development, Membership, BVCA