Investors tap mid-market private equity, credit, and infrastructure for resilient, long-term returns
Private markets are emerging as a powerful engine for long-term growth and resilience in investment portfolios, especially as public market volatility prompts a reassessment of capital allocation strategies.
Mackenzie Investments, in partnership with Northleaf Capital Partners, has released its 2025 Private Markets Outlook, providing accredited investors and advisors with a detailed examination of the evolving landscape and opportunities in private markets investing.
The report underscores the belief that private markets are well-positioned to deliver attractive, less correlated returns and to improve portfolio stability, particularly during periods of public market uncertainty.
With a focus on long-term value creation, the Outlook highlights the increasing accessibility of private markets and their potential to deliver the value, growth and stability that investors are seeking—especially in the mid-market segment.
Three key themes are identified as shaping the private markets opportunity through the remainder of 2025 and into 2026:
Strong and growing demand for mid-market private equity secondaries
The private equity secondary market has seen robust growth, with transaction volumes up 45 per cent year over year in 2024 and projected to surpass US$200bn globally in 2025.
Secondaries have historically performed well in challenging market environments, making them attractive amid ongoing trade-related uncertainty.
Mid-market companies, particularly those in resilient sectors with strong leadership, are expected to drive sustained growth in this segment.
Private credit as the preferred financing source
Private credit continues to gain traction as lenders provide flexible capital solutions to mid-market businesses. Compared to traditional lending, private credit offers speed, covenant flexibility and greater certainty of execution for borrowers.
For investors, private credit presents the potential for attractive yields with a degree of downside protection, and managers are well positioned to deliver the execution that mid-market companies require.
Attractive investment opportunities in essential infrastructure assets
The need for investment in essential infrastructure is becoming more urgent, with an estimated US $100 trillion required globally by 2040 to maintain, replace and build critical assets. As governments face funding constraints, private investors are increasingly stepping in.
The mid-market represents the most compelling opportunities, accounting for over 85 per cent of infrastructure transactions in 2024.
Accelerating trends in artificial intelligence, energy transition and decarbonization are expected to drive private infrastructure into a long-term growth phase, delivering equity-like returns, steady yields, elements of inflation protection and stability amid public market volatility.
Allan Seychuk, vice president, Alternatives, Mackenzie Investments, said public markets experienced significant volatility earlier this year, prompting investors to reassess capital allocation.
While he noted that markets have recently regained some stability, he emphasized the resilience of private markets over longer horizons.
“Private markets have proven their strength by offering compelling opportunities that endure and often excel during periods of disruption,” Seychuk said.
He added that with greater accessibility, these investments are now positioned to deliver value, growth, and stability for investors and advisors, particularly in the mid-market segment.
Nadim Vasanji, managing director, Northleaf, said private markets continue to provide institutional-grade opportunities that have proven resilient by delivering long-term value, reducing volatility, and enhancing diversification.
He noted that both institutional and retail investors increasingly see private assets as essential to navigating today’s complex market environment.
Vasanji said private markets continue to provide institutional-grade opportunities that have shown resilience by delivering long-term value, reducing volatility, and enhancing diversification.
He added that investors increasingly view these assets as core building blocks within diversified portfolios rather than satellite exposures.
