3rd Annual Dynamo Software Survey: Despite Volatility, General Partners Project Optimism Across Fundraising, Tech and Market Diversification Plans

Forward-Looking GPs Accelerate Plans for New Funds, Wider Markets, and Tech-Powered Operations, Dynamo Frontline Insight Report Finds

For the third consecutive year, Dynamo Software’s proprietary research on trends, challenges, and opportunities facing General Partners (GPs) offers a glimpse into what the next 12 months may bring in the alternative investment marketplace. Based on insights from 80 GPs across diverse geographies and asset classes, the accompanying brief — Dynamo Frontline Insight Report: Trends, Challenges, and Insights from Global General Partners — explores five key expectations from the global GP community:

• Raising new funds
• Deploying capital to new geographies
• Spending more on technology
• Strategizing for market volatility
• Adopting AI

Private equity, hedge fund, and venture capital GPs participated in the survey in March and April 2025.

Raising new funds

More than seven in 10 GPs (73%) plan to raise at least one new private equity, venture capital or hedge fund in 2025, an indicator of high market confidence.

In terms of overall fundraising activity, 40% expect their efforts will ramp up even more than 2024. Although 26% admitted that economic uncertainty made it too hard to project, just 4% expected their firms’ fundraising to slow down significantly.

GPs appear to be under no allusion that fundraising in 2025 will be easy. In fact, this year’s respondents revealed the tension between their ambitions and market realities, naming “Fundraising in current market conditions” as their top business challenge. “Deal activity” and “Increased holding periods” were second and third, respectively.

Deploying capital to new geographies

The percentage of GPs with plans to invest in the Asian market surged more than 22 points to 30% year over year, reflecting the region’s growing appeal.

While survey responses were collected before China’s reaction to recent U.S. tariffs, it’s likely many GPs were already factoring in the potential for geopolitical tension. Hedge fund participants who participated in a May 2024 Dynamo Frontline Insight report certainly were. A significant percentage of those GP respondents cited geopolitical conflicts (63%) and global trade tensions (43%) among the top five factors influencing their upcoming investment allocations.

GP interest in the Asian market likely stems from more than just a desire to diversify amid shifting international dynamics. Advanced AI and other technology innovations in the region, as well as corporate governance reform, like that in Japan, are helping drive growth in Asia-Pacific alternative investments.

Spending more on technology

Many GPs appear to see technology as a key enabler of fundraising in a challenging environment. “Deal sourcing and relationship tracking,” as well as “Fundraising and marketing automation,” were named among the most important technology focuses for the year ahead. “Data security and privacy” rounded out the top three areas of focus.

In terms of allocating resources to technology integration, this year’s survey respondents seemed to point to a significant increase in available budget. Just one year ago, half of GPs said they intended to increase their technology spend in 2024. That number jumped a full 23 points to 73% of this year’s surveyed GPs.

Respondents appear to be looking for platforms that encourage employee adoption while also enhancing team efficiency. The most desirable outcomes of new technology GPs named were:

• Creating efficiencies and optimizing workflows
• Empowering the whole team to use it
• Having the tech work with existing systems
• Ease of use and access anywhere anytime

“It’s both fascinating and encouraging to see the emphasis on employee-centric outcomes when GPs are thinking about their technology capabilities,” said Dynamo Software CEO Hank Boughner. “Even as the ALTS space grows in its digital maturity, it remains a human-to-human business where technology is ultimately evaluated by how well it advances GP ingenuity and investor trust.”

This view of technology as a talent enabler is also reflected in the survey data. Even as tech budgets increase, more than half of GPs (53%) say they plan to expand their teams in the next 12 months.

Strategizing for market volatility

Broader economic conditions are prompting additional strategic shifts for GPs beyond capital allocation. This year’s report found that an increased focus on due diligence and risk management due to market volatility was considered the No. 1 most significant business impact of the current global economy.

Notably, GPs are looking at new business models to grow and innovate amid uncertainty. As just one example, more than six in 10 (65%) are actively marketing to and onboarding retail investors and high-net-worth individuals.

Adopting AI

Survey respondents sent mixed signals on AI. A majority named leveraging AI-powered decision-making tools among their top three priorities for 2025. Yet, integrating AI and machine learning ranked last among the most important factors of new tech implementation. This may point to a gap between strategic intent and operational readiness. It’s not uncommon for GPs to report obstacles related to AI implementation, including regulatory uncertainties and balancing costs with proven outcomes.

“AI and machine learning features that empower teams are most likely to find purchase with GPs,” said Boughner. “FinTechs adding AI to their platforms would do well to focus on tangible improvements in day-to-day workflows over flashy marketing. Just as important, though, the user experience must be thoughtfully considered and intuitive, so that it empowers, not distracts, from an associate’s core responsibilities.”

About Dynamo’s Frontline Insight Reports

Published quarterly, Dynamo’s Frontline Insight Reports contain primary research obtained through online surveys of targeted alternative investor audiences. The survey results are contextualized by Dynamo subject matter experts in formal Frontline research reports. To date, Dynamo’s research team has focused on delivering noteworthy insights related to the attitudes, predictions, and strategic plans that Limited Partners (LPs), General Partners (GPs), Hedge Funds, Emerging Managers, and Fund Accountants have on a number of alternative investment topics. To learn more about Dynamo’s research reports, visit the Resource Library or contact media@dynamosoftware.com.

About Dynamo Software, Inc.

Dynamo gives alternatives investors a Performance Edge, empowering them to efficiently scale their firm to capitalize on the growing wave of private market opportunities. With the Dynamo Alternative Investment Platform, Limited and General Partners can now run a tightly integrated firm, putting all their data to work to accelerate operations across front, middle, and back office, unleashing teams to work smarter, and allowing leaders to make better investment decisions and scale their firm. Dynamo has a global footprint with operations across North America, EMEA, APAC, and UAE. For more information, please visit DynamoSoftware.com.

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“AI & machine learning features that empower teams are most likely to find purchase with GPs,” said Dynamo's CEO. “FinTechs adding AI to their platforms would do well to focus on tangible improvements in day-to-day workflows over flashy marketing."