LP Allocations to Alternatives Surge to Five-Year High as Fund…

Event summary

63% of LPs plan to increase allocations to alternatives in 2026, up from 55% in 2022 and 54% in 2025.
78% of LPs prefer fund managers for ALTS investments, reversing a two-year decline.
North America regained ground as the top investment destination, while Asia saw a sharp decline.
Cost considerations dropped below efficiency as the top technology priority for LPs.
Document and data management remain the most persistent pain points for LPs.

The big picture

The shift in LP sentiment towards alternatives reflects a broader industry trend of seeking higher returns and diversification in a volatile market. The resurgence of fund managers as the preferred channel for ALTS investments suggests LPs are balancing exposure with control. The focus on efficiency and AI-driven solutions indicates a strategic pivot towards optimizing existing resources rather than merely cutting costs.

What we're watching

Allocation Trends: How the surge in LP allocations to alternatives will impact fund manager strategies and private market valuations.
Regional Shifts: Whether North America can sustain its lead as the top investment destination amid geopolitical and economic uncertainties.
Technology Adoption: The pace at which AI and automation will be integrated into LP workflows to address document and data management challenges.