Amid persistent market volatility, shifting investor expectations and rapid technological disruption, the global private equity and asset management industry is entering a renewed phase of confidence, according to the latest outlook released by KPMG International.
KPMG International’s 2025 Private Equity and Asset Management CEO Outlook, based on insights from 110 CEOs globally, points to a sector increasingly focused on disciplined capital deployment, AI-led transformation and long-term value creation across both public and private markets.
The report highlights that 83 per cent of CEOs remain confident about industry growth over the next three years, signalling resilience despite macroeconomic uncertainty and heightened scrutiny on returns. At the same time, 84 per cent of respondents reported a moderate-to-high appetite for mergers and acquisitions, reflecting continued momentum in deal-making and strategic consolidation.
For India, the findings arrive at a time when private markets are witnessing sustained investor interest, backed by strong economic fundamentals and expanding participation from both domestic and global capital pools. However, firms are also navigating intensifying competition, evolving regulatory frameworks and increasing pressure to generate differentiated returns.
According to the report, Indian firms are gradually moving beyond traditional financial engineering towards AI-enabled value creation strategies. Digitalisation, advanced analytics and sector-focused investment approaches are increasingly being leveraged to strengthen deal sourcing, improve due diligence and enhance portfolio performance.
Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India, said the sector is becoming more selective and operationally focused amid continued uncertainty.
“In an environment marked by persistent uncertainty and heightened scrutiny on returns, private equity and asset management firms are increasingly focused on disciplined capital deployment and driving tangible value from existing portfolios. In India, strong underlying growth, deepening private markets and sustained investor interest continue to create opportunities, even as firms remain selective in their investment approach,” he said.
Poddar added that the ability to combine sector expertise, operational transformation and AI-led insights would become critical for firms seeking to unlock value and deliver consistent long-term returns.
Artificial intelligence and digital transformation emerged as dominant themes across the report. Around 66 per cent of CEOs identified AI as their top investment priority, while an equal proportion said they plan to allocate more than 10 per cent of their budgets towards AI initiatives.
The findings also suggest growing confidence in the technology’s strategic role. Nearly 74 per cent of respondents said they have clarity on how AI will benefit their organisations, while 75 per cent believe they can keep pace with the rapid pace of AI development.
However, talent and capability gaps remain a challenge. About 59 per cent of CEOs cited shortages in technology skills, prompting firms to invest aggressively in workforce transformation. Around 66 per cent said they are actively retraining employees to support AI-driven business models and operational change.
Cybersecurity, fraud detection and data privacy also continue to rank among the sector’s key concerns as firms strengthen governance frameworks and digital resilience in increasingly data-intensive environments.
The report further underlines the growing convergence between sustainability and financial performance. Around 61 per cent of CEOs said ESG compliance and reporting remain priorities, while 40 per cent indicated that sustainability initiatives are now directly linked to financial value creation and long-term resilience.
The findings collectively point to an industry at a strategic inflection point, where firms capable of integrating AI innovation, operational discipline and sustainability-led value creation are likely to emerge as long-term leaders.
For India, KPMG noted that the convergence of economic growth, expanding private capital markets and rising digital maturity presents a major opportunity for the sector. Firms that strengthen governance structures, deepen sector expertise and accelerate technology adoption are expected to be best positioned to lead the next phase of growth in private equity and asset management. |
