What’s next for private equity? We continue our Private Markets Outlook series with a discussion featuring Jorge Rossello, Managing Director, LP Secondaries. He joins Research team members Andrew Korz and Alan Flannigan to explore how private equity investors are navigating a shifting landscape.

The Private Markets Outlook podcast series from Future Standard features special guests and portfolio managers from across our firm, each bringing unique perspectives on private equity, private credit and real estate. Subscribe and stay tuned for more.

Alan Flannigan: The private equity industry began 2025 teaming with optimism. Market participants pointed to the buildup and dry powder and swelling inventory of companies waiting to be bought and sold as the proverbial coiled spring, ready to be propelled into motion by a new business-friendly U.S. administration and a further decline in interest rates, but tariff chaos quickly took center stage.

Capped by liberation day in early April and market optimism took it on the chin. Suddenly, allocators hopes that a deal making frenzy would finally remedy liquidity issues were dashed or at least delayed. Public markets would return to form post-haste, oscillating through the will-he-or-won't-he public policy uncertainty, but marching to all-time highs.

Meanwhile, uncertainty clouded private markets. NLBO activity slowed, but [00:01:00] GPs found solutions to continue driving value. They pivoted toward add-on acquisitions, focusing on smaller strategic tuck-ins overextending for a headline-grabbing LBO. The secondary market asserted itself as a solution, executing over 100 billion in volume in the first half of 2025, matching investors pining for liquidity with those seeking an attractive entry point.

As has happened so often throughout history, the market saw a problem and devised a solution, but now the slow grind has begun to smooth. Summer's paralysis has given way to a brisk confidence animating the market in its stride.

At August month-end trailing-12-month U.S. M&A volume was up 20% year over year. And U.S. private equity GPs were on pace for their strongest year of deployment since 2021. The U.S. is leading this recovery. Economic growth remains healthy if a bit uneven. Business confidence has stabilized. And on September 17, the market got a long-awaited rate cut [00:02:00] with indications of more to come.

We’re yet to reclaim the vibes of early 2025. But as a more certain backdrop has emerged and other preconditions aligned, optimism is growing. For our third episode in the Private Markets Outlook podcast series, we turn to an investor who's been at the center of it all this year and get his guidance on what lies ahead.

We're pleased to welcome Managing Director of Future Standards LP Secondaries team, Jorge Rossello