This is the 2018 edition of McKinsey’s annual review of private markets. To produce it, we have developed new analyses drawn from our long-running research on private markets, based on the industry’s leading sources of data.2 We have also conducted interviews with executives at some of the world’s largest and most influential GPs and
LPs. Finally, we have gathered insights from our colleagues around the world who work closely with asset owners and managers.
This report begins with a review of the industry’s capital flows in 2017, including fundraising,
AUM, and the deployment of capital. We then review the implications of these dynamics for the all-important relationship between LPs and GPs, and conclude with some ideas about how LPs and
GPs can find continued success in this remark- able age.
Contents
Introduction 2
Going strong 4
Capital inflows in 2017
Now comes the hard part 16
Capital deployment, including dealmaking and dry powder