Goldman Sachs Asset Management (GSAM) has released its 2025 Outlook, entitled Reasons to Recalibrate.
Investors face a range of new dynamics in 2025. Inflation has continued to slow, economies remain resilient and interest-rate cuts are underway. The firm expects the magnitude and pace of monetary policy easing to be in focus throughout the year, wrote Marc Nachmann, global head of asst and wealth management.
For private equity, a more normalized environment for private equity buyouts in 2025 is likely, due to a stabilizing macro backdrop and a recalibration of investor expectations. Today, valuations have broadly stabilized and disconnects between median holding and exit valuations have diminished. Investor confidence is returning as uncertainty about near-term economic growth, inflation, and rate trajectories abates. As such, many portfolio companies appear better positioned for exit at or near values in line with General Partners’ return targets.
