Key Takeaways
- • Nearly 60% of private markets GPs surveyed by S&P Global in February 2026 expressed optimism about hitting fundraising targets this year, with one-fifth reporting "high optimism," though over 25% remain concerned about capital-raising activity.
- • Shifting LP priorities emerged as the dominant fundraising challenge, cited by nearly half of GP respondents, while fund competition and LP distribution concerns were each identified by approximately 36% of respondents.
- • First-time and mid-market managers face the steepest headwinds, as any rebound in private equity fundraising is expected to proceed slowly, with prospective investors increasingly requiring demonstrated investment performance.
- • Approximately 60% of GPs reported dissatisfaction with access to LP allocation and mandate information, while over 50% lack adequate intelligence on peer fundraising strategies, highlighting persistent information asymmetries in capital markets.
- • Deal activity outlook remains constructive, with nearly 79% of GPs expecting 2026 deal volumes to remain consistent (40.4%), improve somewhat (34%), or improve significantly (4.3%), aligning with S&P's broader forecast for gradual transaction volume uptick.
Summary
The private markets fundraising environment in 2026 presents a mixed narrative of recovery tempered by structural headwinds. According to S&P Global's February 2026 survey of general partners, nearly 60% of respondents expressed optimism about meeting their fundraising targets this year, with approximately 20% characterizing themselves as "highly optimistic." This sentiment reflects cautious confidence in a market transitioning out of cyclical lows. However, the data reveals meaningful segmentation within the GP universe: more than one-quarter of capital raisers remain "concerned" about their fundraising prospects, underscoring persistent challenges for certain manager cohorts.
The primary impediment to fundraising success is not capital availability but rather evolving allocator preferences. Shifting LP priorities topped the list of obstacles, cited by almost half of surveyed GPs as their most pressing challenge. Fund competition and LP concerns regarding distribution patterns each accounted for roughly 36% of responses, indicating that GPs must contend with intensified competition for institutional capital alongside heightened scrutiny of portfolio company cash return mechanics. Notably, first-time and mid-market managers face disproportionate difficulty, as prospective investors increasingly demand tangible evidence of past investment performance before committing capital—a threshold that managers without established track records or significant assets under management struggle to clear.
Information asymmetries compound these challenges. Approximately 60% of surveyed GPs expressed dissatisfaction with their access to data on LP allocations and mandate parameters, while over half lack adequate visibility into peer fundraising strategies. This knowledge gap constrains GPs' ability to calibrate fund positioning and messaging to match institutional investors' evolving requirements. S&P Global's acquisition of With Intelligence in a $1.8 billion transaction last November signals recognition of this intelligence deficit within the broader market.
Dealmaking sentiment remains comparatively constructive. Nearly four in five GPs reported neutral to positive outlooks for transaction volumes in 2026, with 40.4% expecting consistency, 34% anticipating modest improvement, and 4.3% foreseeing significant growth. This assessment aligns with S&P's forward guidance predicting a gradual acceleration in private equity-backed transaction activity throughout 2026, suggesting that while capital deployment may not rebound sharply, the market has likely bottomed and is entering a measured recovery phase.
The primary impediment to fundraising success is not capital availability but rather evolving allocator preferences. Shifting LP priorities topped the list of obstacles, cited by almost half of surveyed GPs as their most pressing challenge. Fund competition and LP concerns regarding distribution patterns each accounted for roughly 36% of responses, indicating that GPs must contend with intensified competition for institutional capital alongside heightened scrutiny of portfolio company cash return mechanics. Notably, first-time and mid-market managers face disproportionate difficulty, as prospective investors increasingly demand tangible evidence of past investment performance before committing capital—a threshold that managers without established track records or significant assets under management struggle to clear.
Information asymmetries compound these challenges. Approximately 60% of surveyed GPs expressed dissatisfaction with their access to data on LP allocations and mandate parameters, while over half lack adequate visibility into peer fundraising strategies. This knowledge gap constrains GPs' ability to calibrate fund positioning and messaging to match institutional investors' evolving requirements. S&P Global's acquisition of With Intelligence in a $1.8 billion transaction last November signals recognition of this intelligence deficit within the broader market.
Dealmaking sentiment remains comparatively constructive. Nearly four in five GPs reported neutral to positive outlooks for transaction volumes in 2026, with 40.4% expecting consistency, 34% anticipating modest improvement, and 4.3% foreseeing significant growth. This assessment aligns with S&P's forward guidance predicting a gradual acceleration in private equity-backed transaction activity throughout 2026, suggesting that while capital deployment may not rebound sharply, the market has likely bottomed and is entering a measured recovery phase.
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