Global LP survey points to 2026 public listings, rising manager dispersion in private credit, and growing reliance on secondaries and co-investments
After years of stalled exits and cautious fundraising, global institutional investors are signaling that private markets may be entering a new cycle.
A new survey of limited partners by Coller Capital indicates growing confidence that IPO markets will reopen in 2026, while private credit, secondaries and Asia-Pacific strategies continue to draw fresh capital. The findings highlight how investors are reshaping portfolios for a landscape defined by renewed liquidity prospects but sharper manager differentiation.
More than three quarters of surveyed LPs say their private equity managers are preparing portfolio companies for IPOs and almost a third report hearing that multiple managers have concrete listing plans for 2026, a notable reversal from recent years when IPO activity was largely frozen.
Only a small minority say IPO discussions have not yet surfaced and, if these plans materialize, private equity funds could finally begin clearing backlogs of mature holdings, potentially improving cash distributions to investors who have been locked into extended holding periods.
Private credit leads
Private credit remains the fastest-growing segment within alternatives, but confidence is tempered by a belief that performance gaps between managers will widen.
Over the next year, more LPs expect to increase allocations to private debt than to any other private market category. At the same time, nearly two thirds anticipate greater return dispersion across credit managers, suggesting a more selective environment ahead.
Rather than treating private credit as a uniform yield solution, investors appear to be preparing for a market where underwriting discipline, deal sourcing and portfolio construction become critical differentiators.
Liquidity innovation inside private markets is also accelerating. GP-led secondary transactions — in which managers move assets from older funds into new continuation vehicles — are expected to become a permanent feature of the private capital ecosystem. Most LPs foresee continued growth in these transactions within private credit strategies, driven by opportunities to purchase assets at discounts, gain exposure to seasoned portfolios or address liquidity needs.
Although most investors still opt to cash out when offered liquidity through continuation vehicles, a growing share now choose to reinvest, reflecting rising comfort with these structures as long-term holdings rather than one-off exit tools.
Manager execution confidence
As continuation vehicles become more complex, confidence in manager execution remains relatively high. Most LPs believe general partners are equipped to handle these multi-stage fund structures. That support is crucial as second-generation continuation vehicles — where assets are rolled multiple times — become more common.
“This edition of our Barometer shows how private markets continue to evolve and rebalance across different fronts,” noted Jeremy Coller, CIO and Managing Partner of Coller Capital. “LPs are beginning to see a path back to traditional exits through IPOs, while at the same time becoming more comfortable with continuation vehicles as a long-term feature of the market. Against that backdrop, investors are quite rightly being more selective – about managers, strategies and structures – as they position portfolios for a more demanding environment.”
Co-investments are playing a larger role in manager selection decisions, driven by fee efficiency and access to high-conviction deals. However, limited access to co-investment opportunities remains a barrier for some investors. Late-stage primary commitments are also gaining traction, offering the ability to assess early fund performance before deploying capital.
Technology is another emerging theme, though investors are cautious about where automation fits. While LPs expect artificial intelligence to influence research and junior talent development, there is strong consensus that investment decision-making authority should remain firmly in human hands.
Regional gains
Regionally, Asia-Pacific is regaining prominence in allocation plans. India leads expected exposure growth through both regional and country-specific strategies, while Japan is also attracting renewed attention as investors express greater confidence in its private market depth and maturity.
Overall, the survey suggests private markets are transitioning from a period of suppressed exits and easy fundraising to one defined by reawakening liquidity, higher competition among managers and more sophisticated portfolio construction.
For investors with alternative allocations, the coming cycle may reward those positioned for IPO-driven exits, disciplined private credit selection and evolving secondary-market liquidity pathways.
