GPs Bullish on Fundraising and Growth — Evening Brief – 05.20.25
General partners (GPs) in the alternative investment sector are increasingly optimistic about fundraising and growth in 2025, according to Dynamo Software’s third annual survey of 80 global GPs.
The survey, conducted in March and April 2025, found that 74% of GPs plan to launch at least one new private equity, venture capital, or hedge fund next year. Additionally, 40% expect to ramp up fundraising efforts compared to 2024, with only 4% anticipating a significant slowdown. This confidence persists despite fundraising being cited as the top business challenge, followed by deal activity and longer investment holding periods.
A notable shift in investment focus shows 30% of GPs targeting Asian markets, up 22 percentage points from last year, likely driven by technological innovation and corporate governance reforms, particularly in Japan.
Technology investment is a priority, with 73% of GPs planning to increase tech spending in 2025, up from 50% in 2024. Key areas include deal sourcing, relationship tracking, fundraising automation, and data security. “It’s both fascinating and encouraging to see the emphasis on employee-centric outcomes when GPs are thinking about their technology capabilities,” said Dynamo Software CEO Hank Boughner.
“Even as the ALTS space grows in its digital maturity, it remains a human-to-human business where technology is ultimately evaluated by how well it advances GP ingenuity and investor trust,” he added.
Human talent remains critical, with over 50% of GPs planning to expand their teams in the next 12 months. Market volatility has heightened the focus on due diligence and risk management, identified as the top economic impact. Additionally, 65% of GPs are marketing to retail investors and high-net-worth individuals to diversify their investor base.
AI adoption shows mixed signals: while AI-powered decision-making tools are a priority, AI and machine learning integration ranks lowest in technology implementation factors. Boughner noted, “Fintechs adding AI to their platforms would do well to focus on tangible improvements in day-to-day workflows over flashy marketing.”
The findings are part of Dynamo’s quarterly Frontline Insight Reports, which explore trends and challenges in the alternative investment industry.