Tariff Fears: Private Markets vs. Traditional Asset Managers – Morningstar
- Private market firms are feeling increased pressure from tariffs, according to Morningstar.
- First-quarter 2025 fundraising for European private equity firms has lagged compared to the same period last year,with returns dipping below long-term averages.
- Schultz attributed the slowdown to liquidity pressures as limited partners struggle with muted exit activity, which constrains their ability to recycle capital into new funds.
Tariff fears are rattling private market firms, creating headwinds for fundraising and potentially impacting returns, Morningstar reports. While traditional asset managers show signs of recovery, the European private equity sector faces a slowdown after a robust 2024. The latest analysis from Morningstar reveals liquidity pressures are mounting, exacerbated by uncertainty surrounding tariffs. Analysts note the fundraising stumble and recommend Partners group for investors seeking private market exposure, citing its strategic positioning. news Directory 3 recently covered the story, reinforcing the challenges. Are there opportunities in the shifting landscape? Discover what’s next …
Tariff Concerns Impact Private Equity Fundraising, Says Morningstar
Updated May 28, 2025
Private market firms are feeling increased pressure from tariffs, according to Morningstar. The firm suggests this is creating near-term challenges for the sector. While traditional asset managers show signs of recovery, European private equity firms are experiencing a fundraising slowdown after a strong 2024.
First-quarter 2025 fundraising for European private equity firms has lagged compared to the same period last year,with returns dipping below long-term averages. Johann Schultz, senior equity analyst at Morningstar, noted the fundraising stumble followed a blockbuster year.
Schultz attributed the slowdown to liquidity pressures as limited partners struggle with muted exit activity, which constrains their ability to recycle capital into new funds. He added that uncertainty around tariffs will likely worsen these pressures, impacting private equity fundraising.
Morningstar analysts suggest traditional European asset managers currently offer more upside potential than private market firms. For investors seeking private market exposure, they recommend considering Partners Group, citing its resilience and strategic positioning in the market.