Fundraising climbs and exits improve, but leverage and liquidity pressures reshape strategies
North America’s private markets have entered 2026 with renewed strength, as fundraising and assets under management rebound while investors adapt to a more complex liquidity environment.
BlackRock’s Preqin has released its latest Private Markets in North America report showing activity picking up across asset classes, even as structural challenges persist. The data points to a market that is stabilizing but evolving.
“North America remains the most developed private markets region globally, but its growth drivers are evolving,” said Cameron Joyce, director, head of Research Insights. “The private credit market has been scaling as a core source of capital, the secondaries market continues to evolve to provide liquidity solutions amid a more challenging backdrop for exits, and AI‑related exits are starting to unlock deal flow in parts of the venture market. Together these shifts highlight how investors are adapting portfolio construction and risk management in a more constrained liquidity environment.”
Capital raising in North America strengthened in 2025, with total fundraising reaching $861bn, up from $762bn the previous year. At the same time, assets under management climbed to $8.46tn by mid-2025, compared to $8.23tn at the end of 2024.
The gains reinforce the region’s standing as the global hub for private markets, even as interest rates, geopolitical tensions, and policy uncertainty continue to weigh on sentiment.
While still below peak levels seen earlier in the cycle, the increase in capital flows suggests a recovery is underway after the sharp slowdown that followed 2022.
A defining theme across asset classes is the growing importance of liquidity solutions.
Private equity secondaries are expanding rapidly as investors seek ways to unlock capital in a slower exit environment. At the same time, semi-liquid private credit funds are scaling quickly, offering investors more flexible access to income-generating strategies.
These trends reflect ongoing constraints in distributions, as limited exits have delayed capital recycling for LPs.
Private credit remains a standout, supported by steady performance and rising demand for yield. New fund structures, particularly semi-liquid vehicles, are helping broaden access while reshaping traditional fundraising dynamics.
Performance trends are increasingly uneven across private markets.
Private equity and venture capital have faced pressure from weaker exits and declining returns in recent vintages. Venture capital fundraising, in particular, remains well below its 2021 peak, despite improving deal activity.
However, signs of recovery are emerging. Venture capital exit values rebounded sharply in 2025, returning to levels last seen in 2021, driven in part by large transactions and AI-related deals.
In contrast, private credit and infrastructure have delivered more consistent returns, benefiting from income streams and defensive positioning. Real estate is also showing early signs of recovery, with fundraising rising in 2025—largely driven by debt strategies—while equity activity remains more subdued due to uneven sector fundamentals.
Hedge fund leverage is increasing, particularly in relative value and macro strategies, as managers seek to enhance returns in a competitive environment. North America continues to dominate the space, accounting for 79% of global hedge fund assets.
While leverage can boost performance, it also heightens sensitivity to market stress and funding conditions.
In private credit, continued growth—especially through business development companies—has raised questions about credit quality, although current data suggests deterioration remains contained.
North America-based private wealth investors are overwhelmingly focused on domestic opportunities, with 77% of searches on Preqin Pro targeting US-focused strategies. Growth equity, buyout, infrastructure, and private credit remain the most sought-after areas, highlighting a continued preference for scale, income, and long-term capital appreciation.
Despite ongoing challenges, the outlook for North American private markets is improving.
Lower interest rates could support a stronger exit environment, helping to ease liquidity pressures and revive fundraising momentum. At the same time, innovation in fund structures and growing demand for alternative income sources are creating new opportunities.
But risks remain tied to leverage, valuation dispersion, and macro uncertainty.
Overall there is cautious optimism for a market regaining its footing, but one that is increasingly shaped by liquidity constraints, evolving investor preferences, and a shifting global backdrop.
