“At the close of 2024, both limited partners (LPs) and general partners (GPs) were broadly enthusiastic about investment opportunities following a difficult few years,” according to the Barnes & Thornburg LLP 2025 Investment Funds Outlook report (Report). The Report, the firm’s third annual industry outlook report, covers the most pressing issues facing LPs and GPs; compliance focus areas; key fund terms; succession plans; and respondents’ positive outlook for the economy in general and hedge funds, private credit and the cryptocurrency market in particular. The biggest takeaway from the Report is the “positivity and optimism” of both managers and investors, Barnes & Thornburg partner Scott L. Beal told the Hedge Fund Law Report. “Despite some volatility and turmoil in the markets earlier in the year, the majority of respondents view the general economic outlook (72%), availability of capital (66%) and regulatory environment (64%) as investment opportunities. That is consistent with what we’ve seen in our practice as well,” he said, adding that “it was notable to see that optimism with respect to some sectors or industries that have had challenges in the last few years, including hedge fund and cryptocurrency markets.” This article synthesizes the Report’s key fundings, with additional commentary from Beal. See “Investment Fund Survey Finds Growing Investor Bargaining Power” (Aug. 17, 2023).