Discover the Top 7 LP Opinions Shaping Perspectives 2026
In recent findings from Emegypt’s LP Perspectives 2026 Study, investor sentiment about private equity reflects a complex landscape. As we near the conclusion of 2025, limited success in achieving performance benchmarks has been noted.
Performance Expectations and Current Trends
According to the study, 46% of Limited Partners (LPs) indicated that private equity (PE) investments failed to meet benchmarks in the past year. Additionally, 31% expect this trend to continue. This marks a notable contrast to last year’s study, where only 36% reported similar disappointments.
Investment Plans and Allocation Stability
Despite prevailing challenges, 38% of LP respondents plan to increase their private equity spending, although this figure is a decrease from 45% in the previous year. Half of the LPs intend to maintain their current allocations, a figure that has shown resilience over time.
Addressing Liquidity Challenges
An impasse in exits has hampered capital redeployment for investors. Many LPs are exerting pressure on General Partners (GPs) for distributions from older funds. Over half of respondents are putting ‘some’ pressure, while another 17% are applying ‘a lot’ of pressure, highlighting the urgency of liquidity solutions.
Competition Among Managers
The competition in private equity remains fierce. A decline in the number of LPs planning to add new managers has been observed, dropping 3 percentage points year-on-year. Just 9% of LPs favor investing with small or emerging managers compared to their larger counterparts.
Fundraising Challenges Impacting Returns
Fundraising has proven tough, with global PE funds raising $569.5 billion in the first three quarters of the year, a decrease from $727.9 billion in the same period last year. Concerns regarding fundraising effects on GP stakes returns have surged, with those expressing worry jumping from 35% to 71% in a year.
Emerging Fund Structures
Interest in semi-liquid or evergreen funds is growing. Approximately one-third of LPs are attracted by the operational simplicity, while 24% appreciate the enhanced liquidity these structures provide. Moreover, 22% are seeking lower J-curve exposure.
AI Investment Perspectives
The adoption of AI in private equity is met with mixed feelings. While one-third of LPs view GPs using AI positively, 46% express uncertainty regarding the associated risks, emphasizing the need for clarity in this evolving area.
ESG Considerations Post-Election
With Donald Trump’s potential return to the White House, investor attitudes toward ESG priorities remain steady. Minimal shifts in investor responses indicate that climate change remains a priority for many in the face of political change.
- 46%: Percentage of LPs reporting PE investments below benchmarks.
- 38%: LPs planning to increase spending on private equity.
- $569.5 billion: Total funds raised globally in 2025.
- 71%: LPs worried about fundraising’s impact on returns.
The findings from the LP Perspectives 2026 Study highlight a crucial moment for investors as they navigate the evolving dynamics of the private equity landscape. Understanding these trends is essential for making informed investment decisions going forward.
