83% use AI for deal sourcing, 81% for due diligence: SG Analytics Releases 2025 Outlook for Private Equity

PE firms face market volatility with record dry powder, rising AI adoption, and a shift toward ESG, tech, and alternative exits.

The investment landscape is shifting rapidly, and private equity firms are rethinking traditional approaches. Our report distills critical insights to help stakeholders make smarter decisions.”

— Mayuresh Wagh, Senior Vice President of Investment Insights at SG Analytics

PUNE, MAHARASHTRA, INDIA, April 7, 2025 /EINPresswire.com/ -- SG Analytics, a leading data-centric research and analytics firm, has released its latest Private Equity Survey Report 2025, offering insights into how small- and mid-cap PE firms are navigating market volatility, evolving investment priorities, and technology-driven transformation. The report highlights critical changes in fundraising approaches, capital deployment strategies, and exit planning; shedding light on the tools firms are using to stay agile in today’s complex environment.

93% of respondents indicated a primary focus on small-cap private equity, reflecting a clear directional trend. As macroeconomic and regulatory challenges persist, PE firms are increasingly realigning their strategies across investments, exits, and tech adoption to drive sustainable growth.

Key insights from the report include:
1) Fundraising is under pressure, with over 50% of firms citing uncertainty due to economic volatility; yet, 99% acknowledge that technology is playing a transformative role in capital-raising.
2) Dry powder is at record highs, with 80% of firms holding over 30% of fund capital in reserves and 100% reporting a year-over-year increase in undeployed capital.
3) The investment trinity—ESG, technology, and emerging markets—has become the core strategic focus, driven by a need for sustainable growth and future readiness.
4) Alternative exits are gaining traction, with 79% of firms considering continuation funds, 70% tender offers, and 63% preferred equity options to manage liquidity.
5) AI/ML is reshaping the investment lifecycle, with over 90% of firms reporting at least 75% effectiveness in AI tools for deal sourcing, due diligence, and portfolio optimization.

To download the full Private Equity Survey Report 2025, visit: https://www.sganalytics.com/private-equity-report

About SG Analytics
SG Analytics (SGA) is a leading global data solutions firm providing data-centric research and contextual analytics services to its clients, including Fortune 500 companies, across the Financial Services, Technology, Media & Entertainment, and Healthcare sectors. Established in 2007 and a Great Place to Work certified company, SGA has over 1600 employees and has a presence across the US, the UK, Switzerland, Poland, and India. Besides being recognized by analyst firms such as Gartner, Everest Group, and ISG, SGA has been part of the elite Deloitte Technology Fast 50 India 2024 and APAC (Asia Pacific) 2025 High Growth Companies by the Financial Times & Statista.

Supriya Dixit
SG Analytics
+91 89836 35333
supriya.dixit@sganalytics.com

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