Private assets

Why VEGA Investment Solutions for private assets?

April 14, 2025 - 8 min read

Why invest in private assets?

There are three key reasons we believe investors should consider private assets.

Firstly, there has been a consistent asset under management growth in private markets. Asset under management totaled USD 13.1 trillion globally as of early 2024, and have grown by over 10% over the last 10 years. That growth is expected to continue and illustrates the strong interest in this asset class.

Secondly, the asset class is directly financing the real economy. Most companies globally are private. Private equity and private debt provide support for growth to companies that are not listed. Infrastructure and real estate projects provide essential services to the population and contribute to the real economy.

Thirdly, it provides diversification for investors and there is a potential for outperformance compared to that expected from a traditional portfolio invested only in listed assets.

However, all these benefits come with intrinsic risks such as illiquidity. Private assets are long-term investments that require special skills to be sourced, managed, and are more difficult to sell.

Pricing is another consideration. Private assets are overall higher fee products compared to some listed products. The typical minimum ticket has traditionally been too high for individuals as well. Complexity is also a factor; these asset classes should be managed by investment professionals with deep experience of financials and private markets and with strong resources.

This is why private markets investing requires a specialist asset manager to help investors source and select the best opportunities as well as manage assets on a daily basis.

What makes VEGA Investment Solutions different?

VEGA Investment Solutions is an asset manager and a wealth specialist affiliate of Natixis Investment Managers. VEGA Investment Solutions covers private assets as well as listed equities, fixed income, and other diversified strategies, and manages over €70 billion in assets under management. VEGA Investment Solutions is a one-stop shop to access a broad range of private strategies with a team dedicated to the creation, advisory, and management of private assets investment solutions:

Through an adaptive multi-private assets allocation. This allows clients to navigate across private asset classes over time, depending on VEGA Investment Solutions' experts' views on the evolution of the economic cycle and the behaviour of private asset classes.
Through independent private fund selection. We invest in what we believe are the best private assets funds within the BPCE group and also externally with an independent due diligence and ESG analysis process, respecting an affiliate neutral approach.

We believe navigating private markets using a multi-private assets approach that can allocate to various asset classes such as private equity, private debt, real estate, and infrastructure across market cycles, vintages, GPs, and geographies is key to unlocking the potential of private assets for investors into one investment solution.

Secondly, we have a strong focus on democratising private assets. We have designed a range of innovative investment solutions, including listed and private strategies together or multi-private assets that can offer private assets exposure to various investors from individual to wealth to pension schemes. We offer advisory for insurers on tailored Unit-linked profiles management. We provide education to help clients get relevant information on all private market asset classes and the specifics of investing in them.

We rely on strong research capabilities on private markets and modeling capabilities to facilitate the democratisation of private assets through evergreen vehicles.

What is your private assets outlook for 2025?

Our view is positive overall. If I summarise it by asset class:

Private equity in 2025 should be set for improved exit opportunities supported by favourable market conditions and a gradually recovering IPO market. However, uncertainty remains particularly around the timing of this rebound. While favourable market conditions could support selected exits, the overall environment is still marked by caution. Fundraising continues to be concentrated among larger firms, surpassing 50 billion in 2024, and valuation increases are likely to remain modest. In the US, uncertainty persists due to interest rate volatility and investor caution, following disappointing IPO performances in 2024. In contrast, Europe shows signs of resilience with private equity valuation strengthening.
Private debt is, in our view, well positioned to outperform public credit in 2025, offering potential superior risk-adjusted returns. It benefits from an illiquidity premium, higher yields than traditional fixed income, and shorter durations compared to other private assets. Private debt also provides flexible tailor-made financing solutions. In 2024, fundraising in this segment reached $197 billion. As market and monetary conditions improve, private debt is expected to remain resilient.
Infrastructure remains a core private asset allocation driven by long-term mega trends such as energy transition, digitalisation, and sustainability. Investment in renewables, energy storage, and grid modernisation is expected to accelerate, fueled by initiatives such as the US IRA and the European green deal. Rising data consumption and AI-driven computing needs are also fueling investment in digital infrastructure, particularly data centers. Meanwhile, public-private partnerships and regulatory support continue to drive capital deployment despite challenges related to supply chain constraints and labour shortages.
The European real estate market is entering a stabilisation phase as inflation in the Euro zone is expected to normalise around 2% in 2025, and interest rates begin to decline. Combined with stabilising bond yields, this trend is improving visibility for long-term real estate investment. Investor confidence is gradually returning with core assets and prime locations seeing renewed interest. Meanwhile, alternative real estate segments such as logistics, data centres, hotel and residential rental markets continue to attract capital driven by shifting demand dynamics.

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