NEW REPORT
Past performance and liquidity: An indicator of future fundraising results?
The answer may surprise you.
Download the report
2024 was a year marked by stalled exits and slower LP distributions. With fundraising only getting tougher, a new playbook is emerging.
Our latest report, in partnership with Transacted, explores the shifting dynamics behind ongoing fundraising success. Data shows that while past fund performance alone doesn't guarantee future fundraising outcomes, hitting key return thresholds correlates strongly with an increased likelihood and speed of raising larger successor funds. However, size bias persists: despite evidence that megafunds tend to underperform middle-market peers, they continue to attract the lion’s share of capital, driven by brand familiarity, the scale of their back office, and LP resource constraints.
What to expect in the report
You’ll learn:
Why past performance isn’t enough—and which metrics truly predict fundraising success
How capital concentration is reshaping the landscape (and what that means for mid-market managers)
What successful GPs do differently to win in a challenging market
How operational excellence and technology are becoming the new differentiators
Featuring proprietary data from Transacted Pro and candid insights from Align Ventures, Prime Finance, and 10 Federal, this is a must-read for GPs looking to succeed in 2025 and beyond.
Insights from private markets GPs
In general, the world’s largest LPs have to make large capital commitments, and their scale dictates that they invest with the largest managers. Admittedly, better returns might be earned in smaller funds where, in theory, there is great alpha to be captured in smaller, less efficient markets.
Alex Brooks
Partner
Capstone Partners
In the LP world, there is a bit of a consolidation mindset, a mindset focused on core managers. Uncertainty reinforces that.
Scott Voss
Managing Director
HarbourVest Partners
Raising capital is about nurturing your LP relationships. Managing them and building trust can take years, so staying in front of them is crucial, from positioning why you like the deal to continuing to update them when they do invest in a deal.
Grant Hosking
Managing Partner
Align Ventures