Tariff Fears Hit Private Market Firms Harder Than Traditional Asset Managers: Morningstar 

Private market firms are experiencing greater tariff-related pressures than traditional asset managers, according to Morningstar, which warns of near-term headwinds for the sector. While traditional asset managers are showing signs of recovery, private market firms, particularly in European private equity, are experiencing a slowdown in fundraising following a record-breaking 2024. 

First-quarter 2025 fundraising for European private equity firms has lagged in the same period last year, with returns falling below long-term averages. “After a blockbuster year in 2024, European private equity fundraising stumbled in early 2025, with first-quarter levels trailing well behind last year’s highs,” said Johann Schultz, senior equity analyst at Morningstar.  

“The slowdown reflects broader liquidity pressures as limited partners grapple with muted exit activity, constraining their ability to recycle capital into new funds. Uncertainty around tariffs will exacerbate these pressures.” 

Morningstar analysts noted that traditional European asset managers currently present more upside potential compared to private market firms. For investors seeking private market exposure, they recommend considering Partners Group due to its resilience and strategic positioning.