Infrastructure has emerged as the leading alternative asset class, achieving a 37.2% return from Q3 2021 to Q3 2024, according to Preqin. Private debt outperformed equity strategies with a 6.3% return in 2024, though direct lending shows signs of moderation. Investors may shift to riskier segments like mezzanine debt, which returned 11.1%. Private equity lagged behind public equities, with a 3.6% return compared to the S&P 500’s 22.1%. Venture capital faced challenges, with one in five companies experiencing down rounds, highlighting ongoing valuation pressures. The report notes private capital’s underperformance relative to targets, particularly in venture capital.