Private equity continues to dominate investor sentiment heading into 2025, with nearly 60% of limited partners planning to increase their exposure to the asset class, according to new data from S&P Global Market Intelligence.

The findings, based on responses collected between November and January for the 2025 Private Equity and Venture Capital Outlook survey, reveal a strong vote of confidence in private equity’s resilience and return potential—even before the global equity market downturn in February.

Notably, 52% of LPs named private equity as the top-performing alternative asset class for 2025, up from 39% the previous year. Venture capital and private credit ranked second and third, selected by 17.3% and 13.5% of respondents, respectively.

Allocations to infrastructure and private credit are also expected to increase, reflecting growing interest in alternative strategies that can deliver returns through economic cycles.

Despite the bullish outlook, concerns around elevated asset valuations remain. About 56% of LPs believe private equity valuations are currently too high and may require markdowns, while 69% expressed the same concern for venture capital portfolios.

Nevertheless, the continued commitment to private equity signals strong institutional demand for long-term, high-return strategies amid ongoing public market volatility. The results highlight how private capital remains a central pillar in asset allocation strategies, even as market dynamics evolve.