Outlook points to PE secondaries, credit, and infrastructure as key growth drivers
The appeal and performance of private market investments are set to endure, according to a new report.
Mackenzie Investments and Northleaf Capital Partners’ 2025 Private Markets Outlook highlights the continuing appeal of private markets amid turbulent public market conditions, recognizing private assets as vital contributors to long-term growth and stability in client portfolios.
"Public markets experienced significant volatility earlier this year, prompting investors to reassess how they allocate capital," says Allan Seychuk, vice president, Alternatives, Mackenzie Investments. "While public markets have recently regained some stability, over longer time horizons private markets have proven their strength by offering compelling opportunities that endure and often excel during periods of disruption.”
Despite a return to relative calm in public markets this year, the report asserts that private markets consistently demonstrate resilience and deliver noteworthy returns, especially during volatile periods. It notes that these alternative investments are becoming increasingly accessible.
“With greater accessibility than ever before, we believe these investments are now positioned to deliver the value, growth and stability that investors and advisors are actively seeking for either themselves or client portfolios – particularly in the mid-market segment,” adds Seychuk.
The outlook outlines three key themes expected to present compelling opportunities through the end of 2025 and into 2026:
1. Booming Mid-Market Private Equity Secondaries
Private equity secondaries have shown robust momentum, with transaction volumes surging 45 % year over year in 2024 and forecasted to exceed US $200 billion globally in 2025. During times marked by trade tensions and economic uncertainty, secondaries have historically outperformed, and well-managed mid-market firms are seen as long-term catalysts in this arena.
2. Private Credit: The Go-To Flexible Funding Source
Private credit is gaining traction, offering businesses quicker, more flexible capital solutions—with fewer covenants and firmer commitments—than traditional lenders. For investors, private credit holds the promise of reliable yields along with built-in downside protection. In an environment where speed and certainty are paramount, such financing platforms are becoming a go-to for mid-market companies.
3. Infrastructure: A Growing Playground for Private Capital
With an estimated US $100 trillion needed globally by 2040 just to maintain and expand infrastructure, private investors are stepping in amid constrained government budgets. Mid-market transactions represented more than 85 % of infrastructure deals in 2024—a clear indication of where the activity is concentrated. Fueled by trends such as AI, the energy transition and decarbonization, Northleaf sees infrastructure entering a growth phase, providing equity-like returns, income, inflation resilience, and stability during public market swings.
As volatility persists and the hunt continues for uncorrelated, durable return sources, the report makes a powerful case for embracing private markets.
This analysis comes at a time when Mackenzie itself reports approximately C$227 billion in assets under management (as of July 31 2025), while Northleaf oversees over US$28 billion in commitments across private equity, credit, and infrastructure.
"Private markets continue to offer institutional-grade investment opportunities that have proven their resilience – delivering long-term value, reduced volatility, and enhancing diversification," explained Nadim Vasanji, managing director, Northleaf. "For both institutional and retail investors, incorporating private assets can strengthen portfolios and better navigate today's complex market environment. Increasingly, these assets are viewed not as satellite exposures, but as core building blocks within diversified portfolios – a central part of how investors build resilient portfolios."
