Capital Raising: The Uptake on the Uptick

Over the past few years, fund managers have been navigating rocky terrain in the search of new capital. Moving from mid-2024 into 2025, deal pipelines were still far from full, with the triple punch of geopolitical uncertainty, inflation and interest rate hikes causing reticence among investors and overall trepidation. According to panellists at the 2025 Maples Investment Funds Forum, the road to capital raising might not yet fully clear this year. Rather, perhaps an even rosier scenario is on deck: 2025 is to be preparation for 2026, when industry experts see fundraising making its full return.

“I think right now there’s broad consensus that 2025 could be good but looking ahead, it could be a fabulous fundraising environment in 2026,” one panellist noted during the panel on private equity, which kicked off the day-long event. “I think the question right now is how to calibrate timing in the present market dynamic. It’s about getting stamina and longevity to peak at the right time.”

Beyond shifting market conditions, panellists nodded towards possible loosening of regulations under the second Trump administration.

“I hope that the new administration really spends more time focused on the issues that will directly impact investors,” said one of the participants on a panel dedicated to discussing US regulation.

A glimpse of such a trend came last June, when the US Fifth Circuit Court – considered the most conservative in the US – struck down the SEC’s Private Fund Advisor Rule, which would have required, among other stipulations, advisers of private funds to disclose more information to investors regarding fees and expenses and more stringent rules on secondary transactions. According to panellists, fund managers can expect to see more of the same loosening in regulatory reporting, which in turn, should help to free up both capital raising and investor relations /communications. Industry watchers should also expect to see more streamlining of rules, including on marketing.

“There’s going to be a lot more listening to what the industry actually wants,” said one of the panellists, who sees more open dialogue between market participants and regulators.  Enforcement, on the other hand, is not likely to change. From a capital raising perspective, this could be productive. Having a clear policy in place for anti-money laundering (“AML”) or custody issues, for example, could be encouraging for investors as they would be effective guard rails, promoting confidence.

Guidelines in the form of investor mandates could also keep open the channels between fund managers and investors. If fund managers know what investors want in their portfolios, products can be tailored to suit investors’ needs. In recent years, ESG dominated this front. While the demand for such products in the US has started to wane, there is still some interest in Europe. “ESG fatigue is a few years off,” said one panellist speaking on capital-raising opportunities in Europe. This being said, there has been much more interest in Article 8 funds, which have less stringent ESG regulations, compared to the more exacting Article 9.

In addition to products from fund managers, accessing bespoke platforms could be an effective tool to access EU-based capital. One participant in the EU capital raising panel noted seeing “large demand” for Separately Managed Account (“SMA”) structures, particularly among Nordic institutional investors. This structure allows for customised mandates between investment managers and allocators and are easy to establish, as generally, in addition to the usual contracting process, only necessitate an additional account with the investor’s existing custodian. Panel participants also pointed out the ease that other third-party fund structures such as the Irish Collective Asset Management Vehicle (“ICAV”) and the management company (“ManCo”) allow non-EU investors to access capital in the EU market. Rather than having to go through the regulatory process of setting up an AIFM, or alternative investment management fund, scheme, the ManCo “has made everything efficient and smooth,” said one panellist. A ManCo maintains overarching regulatory and reporting functions and can be a cost-effective way to manage operations in the EU. One panellist pointed out that a ManCo can be a particularly efficient tool for smaller to mid-size fund managers looking to access the EU. These third-party management platforms also allow for customisation according to the fund manager’s needs and goals, which ultimately benefit the investor as well.

Asset management participants looking for opportunities shouldn’t overlook East Asia, noted another panel of Hong Kong-based panellists who noted opportunities for yield, particularly in Chinese state-owned enterprises and the Chinese middle-market. Panellists have also noted that “Japan is ready for business,” with a local take on the “Western-style activist playbook” being one strategy to take when seeking market openings in the world’s third-largest economy.

Is capital raising completely out of the weeds? The consensus was “not quite yet.” According to the industry experts weighing in, it is perhaps time to map out a strategy. “I think we’re in a state of cautious optimism,” said one panellist. “We can plan accordingly.”

For other insights from the forum, please click here and here, and for more information. For more information, please feel free to get in touch with your usual Maples Group contact or [email protected].

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