January 8, 2023
It’s a turbulent—and busy—time in private markets. Portfolios are fuller than ever and there is significant dry powder across the industry. Yet fundraising and deal making for larger transactions are well off 2021’s highs. Further, the slowdown in exits, coupled with declining public market valuations and the resulting denominator effect, has shifted investor allocations. As a result, the current fundraising environment is far more challenging than in the past several years. The latest issue of McKinsey on Investing—brought to you by senior partners Pontus Averstad, Pooneh Baghai, Alejandro Beltrán, and others—steps back from the immediate challenge of the market, and the broader macroeconomic and geopolitical uncertainty, to present a longer-term perspective on how investment firms are evolving. Explore the insights below, and download the full issue for our take on a year of tumultuous change and its implications for investors, businesses, sectors, and the world in which we live.