Last year posed significant challenges for private equity investors, with low dealmaking and exits amid liquidity issues. However, optimism is rising for 2025 as macroeconomic conditions stabilize. Predictions indicate a surge in dealflow due to high levels of dry powder and a favorable credit market, particularly in the mid-market segment. Fundraising remains robust despite a shift in the landscape, with specialized funds attracting attention. While exits are expected to pick up in the mid-market, large-end exits may lag, leading LPs to prioritize actual cash returns over traditional metrics. Overall, 2025 is anticipated to be a pivotal year for private equity.