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LPs Continue to Bet on Private Markets
We're covering LP’s commitment to private markets, South America fintech landscape, and CVC €4B exit in Naturgy.
Good morning, ! This week we're covering LP’s commitment to private markets, South America fintech landscape, and CVC €4B exit in Naturgy.
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PRIVATE CREDIT CORNER
Private Credit Holds Investor Confidence as LPs Stay Committed to Private Markets
Long-term institutional confidence in private markets remains resilient despite slower deal activity and continued macro uncertainty. Recent investor survey data shows that 40% of LPs plan to increase private equity allocations in 2025, while another 50% intend to maintain current exposure levels. In total, 90% of investors remain committed to private markets over the longer term.
Although the share of investors planning to increase allocations has declined from 49% in 2022 to 40% in 2025, the data signals a shift toward more disciplined and selective deployment rather than reduced interest in the asset class itself. Investors continue viewing private markets as core portfolio allocations capable of delivering long-term value and diversification benefits.
For private credit managers, the environment remains particularly favorable. Higher interest rates, constrained bank lending, and delayed exit activity are driving borrowers toward alternative financing solutions. At the same time, institutional investors are increasingly attracted to private credit strategies that offer stable yield, downside protection, and attractive risk-adjusted returns in a volatile market environment. (More)
MICROSURVEY
Private markets investors increasingly believe inflation may settle above pre-pandemic norms.
Where do you expect U.S. inflation to stabilize over the next 12 months? |
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REGIONAL FOCUS
South America Fintech: From Hypergrowth to Institutional Scale
South America’s fintech sector is entering a more disciplined phase of growth. While consumer finance private equity and venture capital investment peaked at $759M in 2021 and $619M in 2022, the chart shows capital deployment has stabilized well above pre-2019 levels. Deal activity has also remained resilient, highlighting sustained investor appetite despite a more selective funding environment.
The region’s momentum is being driven by three structural trends. First, real-time payment systems such as Pix are accelerating financial inclusion and reducing transaction friction across markets. Second, regulatory modernization is creating more scalable operating environments for fintech players, enabling regional expansion with greater efficiency. Third, the ecosystem is producing increasingly sophisticated platforms with stronger underwriting capabilities, embedded finance models, and improving unit economics.
Rather than signaling a contraction, the post-2022 correction reflects a transition from venture-driven exuberance to operational maturity. Investors are shifting focus from aggressive customer acquisition toward profitability, infrastructure, and scalable B2B financial services. (More)
DEAL OF THE WEEK
CVC Exits Naturgy in €4bn Blockbuster Sale
CVC Capital Partners has officially exited its investment in Naturgy, selling its entire 13.8% stake in the Spanish energy company in a transaction valued at approximately €4bn. The deal was executed through an accelerated bookbuild led by Goldman Sachs, with 107.5 million shares placed at €28.55 per share, representing a 4.64% discount to market price.
The transaction marks one of the largest European infrastructure-related exits of the year and highlights continued investor appetite for high-quality energy assets despite ongoing market volatility. CVC initially invested in Naturgy in 2018 and played a key role in the company’s shareholder base alongside Criteria and Australian infrastructure investor IFM.
The exit also follows BlackRock’s earlier divestment of its remaining Naturgy stake, signaling a broader rotation among long-term infrastructure investors. Following the transaction, Criteria will remain Naturgy’s largest shareholder with a 28.5% stake, while IFM holds 15.5%.
The deal underscores how mature infrastructure and energy investments continue providing attractive liquidity opportunities for private equity firms. (More)
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Colin R. Davis