Goldman Sachs Asset Management report reveals: Private equity investments favor infrastructure the most

Zhitang has recently obtained a research report from Goldman Sachs Asset Management, which shows that private equity market investors are generally more optimistic about the investment environment and have higher expectations for releasing liquidity through various exit routes.

The above observation is based on a new global survey conducted by Goldman Sachs' buy-side department involving over 250 general partners (GPs) and limited partners (LPs).

The report points out that private equity market investor sentiment shows resilience, with the most significant uplift in sentiment towards physical asset strategies. In the coming year, investors are most optimistic about sectors such as infrastructure and private equity.

Zhitang has organized this research report as follows for readers.

Which sectors are most favored?

Private equity market investor sentiment shows resilience, with the most significant uplift in sentiment towards physical asset strategies. Investors believe that investment opportunities in the following sectors will remain consistent or improve in the coming year:

Infrastructure (93%)

Private Equity (82%)

Real Estate (81%)

Private Credit (70%)

Tavis Cannell, Global Head of Infrastructure Investment at Goldman Sachs Asset Management, stated: “ Given the massive scale of government and private investment required to update aging assets and build new infrastructure, the infrastructure sector is being driven by multiple structural trends. There are extensive investment opportunities in areas related to artificial intelligence and digitalization, energy production and delivery, the changing global trade landscape, as well as waste and water systems. The performance of this asset class over the past 20 years highlights its robustness and inflation resistance, while providing growth opportunities for investors, especially in mid-sized markets where significant upside can be unlocked through active ownership and value creation.”

Asset managers are more optimistic about releasing liquidity through exit mechanisms

The survey shows that general partners believe that valuation remains the biggest challenge in investing in new projects, with 63% of respondents considering valuation a key factor.

“In terms of exits, 60% of respondents also believe that valuation is the main challenge, second only to macro uncertainty,” the report states.

General partners expect traditional exit paths to significantly broaden, especially strategic sales (80% of surveyed general partners may adopt this method, compared to 56% in 2024). The second is sales led by financial investors (70% of surveyed general partners are considering this method, compared to 42% in 2024).

Additionally, 63% of surveyed general partners believe they are at least likely to release liquidity through IPO projects in the coming year, while just a year ago, this proportion was only 35%.

General partners are also expanding their methods: 30% of surveyed general partners indicated they might adopt continuation vehicles, while last year this proportion was less than 20%. Overall, the number of general partners indicating they are at least likely to adopt continuation vehicles has increased by 6% compared to the 2024 survey.

Limited partners are also more actively managing their liquidity through the secondary market to balance their asset allocation. 17% of surveyed limited partners indicated they sold assets in the secondary market this year, compared to 11% last year. **

Evergreen Structures Favored by Institutions

Research shows that Evergreen structures are not only popular in the wealth management sector. Over 30% of surveyed limited partners from various institutions indicated that they have used or are considering using Evergreen structures for private equity and infrastructure investments.

Among them, more than half are applied in the private credit sector, and over 40% are used in the real estate sector. In addition, over 80% of surveyed large general partners are offering or considering offering Evergreen structures, but only a quarter of general partners managing assets of less than $10 billion provide this structure