The Mood

Two rainy, chilly September days set the scene as the private markets crowd descended on the Palais de Congrès. While the weather was dreary, the mood inside was anything but. Private markets professionals—highly paid optimists by nature—brushed off the rain and dove into the conference with enthusiasm.

Navigating the Palais was its own adventure: the maze-like layout turned every LP’s search for a GP into a test of patience and orienteering. Still, the atmosphere was upbeat, with GPs keen to highlight progress (or at least plans) on liquidity—even if the shortest route between two booths was rarely a straight line.

Lost in the Maze, Found in the CV: Liquidity Solutions Take Center Stage

Liquidity (or the lack thereof) dominated conversations. With IPO markets still muted, large-cap managers struggled to exit, while the lower mid-market (LMM) showed more positive momentum, with several GPs eager to share recent exit wins.

But the real buzz was around continuation vehicles. Many GPs used IPEM to check LP sentiment, with one LP asking, “is 2025 the year of the CV?” Our secondary teams will tell you they’re busier than ever. GPs are increasingly open about their intentions, and more processes are moving. With CVs now a core liquidity tool, both LPs and GPs seem more comfortable—provided the process is well run and externally validated. As one LP put it, “CVs and cross-fund investments can’t be the solution for everything and should remain the exception. I also want to see REAL exits!”

Private Credit: Parisian Tailwinds and Shifting Strategies

Private credit was a bright spot, with LPs showing appetite for strategies beyond direct lending—mezzanine, asset-based, and NAV lending were all in focus. GPs noted rising demand for flexible solutions, while private banks praised evergreen structures over closed-end vehicles. Private credit GPs are also targeting private wealth channels for capital. While upper market spreads continue to tighten, mid and lower mid-market spreads have stayed more stable, supporting activity and investor interest. The mood was upbeat, but as one LP noted cynically, evergreens are “a great way to hide the least performing deals”—proving that even in Paris, scepticism is always in style.

GP Stakes: Darwinian Moments and a Seller’s Market

Our GP stakes colleagues were in high demand. As Jim Zelter, Apollo’s chair, put it in his panel, “PE is going to face a Darwinian moment”—many GPs won’t survive, and the rest will have to adapt. The talk was less about traditional GP-stakes and more about the sheer number of GPs for sale. Large players seem willing to do almost anything—and pay almost any price—to grow. Founders from the last 20 years, many now nearing 60, are being shown checks for their ManCos they never dreamed of, convinced valuations are peaking. Other themes: GP concentration, the rise of “zombie funds” unlikely to raise again, and increasingly tricky due diligence as founders stay coy about their intentions.

Fundraising Market: Bracing for the Next Wave

IR professionals, whether in the Palais or Parisian bistros, agreed: fundraising is tough—and about to get tougher as a new wave of large-cap funds returns. LPs face hard choices, and competition for commitments is set to intensify.

As highlighted in the Financial Times over the weekend: “The expected rush of firms trying to tap investors comes at a time when fundraising is already taking longer than in the sector’s heyday. These processes often ‘take twice as long as they used to’, said Ali Floyd, co-head of European private equity fundraising at Campbell Lutyens.” The article also noted, “This year, the six funds aiming to raise €3bn or more are expected to manage combined commitments of about €34bn, according to Campbell Lutyens. Next year, however, 10 big private equity funds are likely to hit the market, aiming to raise more than €110bn, the firm said.”

One IR professional at IPEM summed it up well:

“If fundraising is a marathon, this year’s race feels uphill—so bring comfortable shoes and maybe a croissant for the journey.”

À la prochaine, Paris!