Venture-Capital Returns Led the Way in Q3
The major investment strategies in private markets — equity, credit and real assets — posted a third consecutive quarter of positive returns in Q3 2025, according to the most recent update of the MSCI Private Capital Universe.
For private-equity funds overall, returns were 3.1%. Venture capital significantly outperformed, delivering a 6.7% gain compared with 1.5% for buyout. The divergence reflected continued strength in growth-oriented assets and improving sentiment for later-stage venture companies, while buyout returns remained hampered by slower exit activity. These private-equity returns trailed public equities, with the MSCI ACWI Investable Market Index posting an 8.2% return for the quarter.
Positive, yet moderate returns in credit, real assets
Private credit delivered positive but moderate returns of 1.6% for the third quarter. Opportunistic lending outperformed, while direct lending and real-estate debt continued to deliver more modest returns, with performance primarily supported by income, and reflecting a generally stable credit environment.
Infrastructure continued to lead the real-assets strategy, while natural resources also posted positive returns. Real estate was flat, underscoring ongoing challenges across parts of the property market.
Overall, the third quarter reinforced venture capital’s renewed leadership within private equity, with growth-oriented strategies driving performance.
Quarterly returns are calculated in USD using the Modified Dietz method and are not annualized. Calendar-year returns represent compounded quarterly returns. Data as of Q3 2025 from the MSCI Private Capital Universe.
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