Did you know that 76 per cent of institutional investors believe private markets will outperform public markets over the next five years?
Or that global private market allocations have grown to an average of 12.5 per cent of portfolios?
Or that almost 60 per cent of investors believe evergreen funds will equal or surpass closed-end structures as the dominant vehicle to access private markets over the next decade?
Our Private Markets Study 2026 taps into the views of 500 institutional investors managing $6.5 trillion in assets across Asia, Europe and North America.
The study highlights that momentum remains strong, with investors increasingly focused on how private markets fit within portfolios, how returns are generated and access routes. At the same time, issues such as transaction costs, liquidity constraints and valuation concerns continue, highlighting the need for continued innovation in fund structures and governance models.
Strikingly, the picture is uneven across regions and by investor type. A high proportion of European investors are already at target allocations; Asian investors report rising concerns around volatility, while North American investors combine strong growth intentions with heightened sensitivity to liquidity and performance risks.
This study uncovers the key trends, opportunities and barriers investors are navigating in the pursuit of long-term outperformance.
Download the study to explore how private markets will continue to drive institutional investor allocations in 2026 and beyond.
Highlights
Among an array of findings, here are some of the themes investors told us about.
%
of respondents plan to increase allocations to private markets over the next two years
percentage points increase in the number of investors who favour co-investing as their preferred way to access private markets
percentage points decrease in the proportion of investors who cite sustainability as an important or deciding factor in their private market investment decisions
What's covered?
Key sections of the study include:
Regional and investor type highlights
North American, European and Asia-Pacific investors are developing increasingly distinct approaches to private markets. These differences are structural rather than cyclical, shaped by varying levels of market maturity, institutional sophistication and local context.
Asset allocation and return expectations
Investor expectations for private markets performance vary sharply by time horizon. Over the next 12 months, just 2% expect private markets to outperform public markets. Over longer time horizons, however, confidence in the ability of private markets to outperform public markets improves materially.
How investors access private markets
Rather than converging on a single access route, investors increasingly seem to be adopting hybrid frameworks, blending traditional closed-end funds with co-investments, multi-asset vehicles, evergreen structures and, in the case of defined contribution schemes, default-fund solutions.
Risks and challenges
The dominant barriers facing investors today are no longer those associated with novelty or unfamiliarity. Instead, they reflect the challenges that arise when an allocation becomes large, embedded and strategically important.
Sustainability
Investors continue to view sustainability as an important consideration when allocating to private markets. However, fewer now describe it as a primary driver of decision-making. This suggests a market in which sustainability has become more institutionalised and viewed less as a standalone theme.
Webcast: Private Markets Study 2026
Join David Hedalen, Head of Private Markets Research, Melissa Bocklemann, Head of Private Debt Investment Specialists, Callum Fraser, Head of Private Markets Equity Investment Specialists and Steven Gardner, Head of Institutional, EMEA, in our upcoming webinar as they explore the key findings of our latest study and discuss the implications for 2026 and beyond.