PE fundraising was surprisingly robust in 2022: Fundraising for PE strategies exceeded the previous year at four of the six big public alternative asset managers. This occurred even as these same managers pushed hard into new strategies and to some extent diversify away from PE. All six had flagship PE funds in the market, with new launches targeting as much as $28 billion in capital.

Market dislocation slowed deployment in Q4: Significant capital was put to work relative to the industry overall; however, PE deployment was down sharply to finish the year, continuing a trend of sequential declines throughout 2022.

Fundraising expectations are more optimistic for 2023: With strategies spanning multiple asset classes and a fresh year of LP allocations to be had, the six public alt managers all expressed confidence that inflows will be greater in 2023 than in 2022.

Portfolio companies continue to see strong revenue growth: With muted returns in Q4, managers highlighted the revenue strength of their respective portfolio companies, which delivered mid-teens-type growth despite the more challenging macro environment.

The private wealth channel remains at the forefront for these managers: The private wealth channel offers tremendous growth opportunities for years to come as these managers look to capture higher percentages of total inflows from the space. Managers are preparing to launch more vehicles in 2023 geared toward private wealth investors across various strategies.

Credit remains a strong performer amid the higher rate environment: Several firms have large and growing credit arms that continue to benefit from rising rates as the majority of their portfolios are in floating rate instruments, which fare better in a higher-interest-rate environment.