Goldman Sachs Asset Management report revealed: Private equity investors are most optimistic about infrastructure.

Zishitang has recently obtained a research report from Goldman Sachs Asset Management, which shows that overall, private market investors are more optimistic about the investment environment and have higher expectations for unlocking liquidity through various exit channels.

The above observations are based on a new global survey conducted by Goldman Sachs’ buy-side department with more than 250 General Partners (GPs) and Limited Partners (LPs).

The report points out: Private market investor sentiment demonstrates resilience, with the greatest boost seen in sentiment towards real asset strategies. Over the next year, the most favored sectors are infrastructure and private equity.

Zishitang has summarized this research report as follows for readers.

Which sectors are most favored?

Private market investor sentiment is resilient, with the largest boosts in real asset strategies. Investors believe that investment opportunities in the following areas will remain steady or improve over the next year:

Infrastructure (93%)

Private Equity (82%)

Real Estate (81%)

Private Credit (70%)

Tavis Cannell, Global Head of Infrastructure Investing at Goldman Sachs Asset Management, said: “Given the massive scale of both government and private investment required to upgrade aging assets and build new infrastructure, the sector is being driven by multiple structural trends. There are broad investment opportunities in areas related to AI and digitalization, energy production and transmission, changing global trade patterns, as well as waste and water systems. The performance of this asset class over the past 20+ years highlights its robustness and inflation resistance, while also providing growth opportunities for investors—especially in the mid-market, where active ownership and value creation can unlock significant upside potential.”

Asset managers are more optimistic about unlocking liquidity through exit mechanisms

The research shows: General Partners see valuation as still the biggest challenge in committing to new projects, with 63% of respondents citing valuation as a key factor.

“In terms of exits, 60% of respondents also view valuation as the main challenge, second only to macro uncertainty,” the report states.

General Partners expect traditional exit routes to expand significantly, especially strategic sales (80% of responding GPs may adopt this method, compared to 56% in 2024). Next is sales led by financial investors (70% of responding GPs would consider this, compared to 42% in 2024).

In addition, 63% of responding GPs believe they are at least likely to unlock liquidity through IPOs in the next year, compared to just 35% a year ago.

GPs are also broadening their approaches: 30% of responding GPs say they may use continuation vehicles, up from less than 20% last year. Overall, the number of GPs stating they are at least likely to use continuation vehicles increased by 6% compared to the 2024 survey.

Limited Partners are also more actively managing their liquidity through the secondary market and balancing their asset allocation. 17% of responding LPs stated that they have sold assets in the secondary market this year, up from 11% last year.

Evergreen structures favored by institutions

The research shows that Evergreen structures are popular not only in wealth management. Over 30% of responding LPs from various types of institutions said they have used or are considering using evergreen structures for private equity and infrastructure investments.

More than half were applied to private credit, and over 40% to real estate. In addition, over 80% of large GPs surveyed are offering or considering offering evergreen structures, but only one-fourth of GPs managing less than $1 billion in assets do so.

Risk Warning and DisclaimerThe market involves risks, and investment should be prudent. This article does not constitute personal investment advice, nor does it take into account individual users’ special investment objectives, financial status, or needs. Users should consider whether the opinions, views, or conclusions contained in this article apply to their specific circumstances. Any investment made based on this content is at the user's own risk.