Capital Allocators – Inside the Institutional Investment Industry Year in Review 2025 (EP.478)
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Dec 22, 2025 This annual review dives into the dominating trends in private and public markets, highlighting the challenges of private equity exits and the impact of liquidity fears. Ted shares insights on where allocators are directing capital, focusing on regions like Japan and sectors such as AI infrastructure. The discussion includes innovative fintech partnerships and the introduction of themed playlists to boost discoverability of standout podcast insights. Listeners can look forward to reflections on yearly learnings and upcoming book recommendations.
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Private Markets Are Frozen By Fear
- Private equity activity is stalled despite plenty of capital, companies, and credit available.
- Ted Seides says the problem is behavioral: GPs and LPs are frozen by fear, so "the oven's not on."
GP And LP Fear Reinforces Illiquidity
- GPs delay exits because selling now could harm track records and fund-raising.
- LPs also pull back commitments fearing liquidity constraints, reinforcing the stalemate.
Scale Has Become The Dominant Force
- Industry structure now benefits the largest managers as sovereigns and private wealth concentrate capital.
- Middle-market firms face contraction unless they become acquisition targets for mega-firms.
