Intro: McKinsey’s Private Markets 2025 Outlook
Fundraising is slow yet capital deployment is growing as firms shift from financial engineering to operational value creation. GPs see AI as a major opportunity, but most struggle because their data is fragmented. Navatar solves this challenge by automating intelligence capture and organization which enables AI to power core processes.
McKinsey’s Global Private Markets 2025 Report, released in May, highlights an industry in transition. Fundraising has slowed to its lowest level since 2016, dealmaking remains muted, and higher interest rates are creating new operational pressures for alternative asset firms. Yet investor appetite remains strong, with limited partners planning to increase allocations in the year ahead as capital deployment grows at a double-digit pace.
McKinsey’s findings underscore a broader shift in how alternative asset firms are moving from traditional financial engineering toward sustained operational value creation. This requires institutionalizing processes and insights that allow them to act decisively and strategically.
The AI Opportunity—and the Data Problem
General partners increasingly see AI as a powerful opportunity—whether for accelerating deal sourcing, improving evaluation, anticipating investor needs, or improving portfolio value creation. But there is a catch: AI is only as good as the data it has to work with.
Most firms have never been able to capture all of their intelligence in one place. Notes from meetings, emails, and conversations often remain scattered across Outlook, Slack, LinkedIn, or personal devices. Legacy CRMs, customized over years, demand manual entry that dealmakers resist. As a result, valuable knowledge is lost and AI has little to work with.
How Navatar Solves it
Instead of relying on manual data entry, Navatar automatically captures intelligence from Outlook, Slack, LinkedIn, call notes, documents, and third-party sources, then organizes and links it to the right relationships and deals in Salesforce. Once centralized, Navatar connects the dots: mapping relationship histories, surfacing firmwide interactions, and creating a dynamic network of intelligence that AI can use to power decisions.
With intelligence captured and organized, Navatar AI gets to work. You can explore the full details in our recent announcement: What Navatar’s AI-Powered CRM Can Do.
The Bottom Line
McKinsey’s 2025 outlook shows an industry at an inflection point. The firms that will lead in this next era are those that treat intelligence as an asset—capturing it systematically, connecting it across relationships, and unlocking its value with AI.
That is the foundation Navatar helps firms build: automating intelligence capture, transforming it into relationship intelligence, and enabling AI to power every process that matters to private markets.
Interested to learn more about us? Connect and book a slot.