LP Survey 2026 Briefing

Meghan McAlpine

00:03 - 27:17

Hi, everyone. Thank you so much for joining me today as I discuss our 2026 LP survey.

Hi. I'm Megan McAlpine.

I'm the senior director of strategy and product marketing at SS&C Intralinks. And I'm gonna be highlighting, like you said, some of the the key highlights from our 2026 LP survey.

If you have any questions, I will have some time at the end of the presentation, so feel free to put that into our q and a, and we'll get started. So I just wanna go through a little bit of introduction of SS&C Interlinx for those of you who do not know us.

Interlinx has over twenty five years of experience under our belt, and we've pioneered solutions that have shaped the financial services industry, including developing the very first virtual data room. And it's really this spirit of innovation that continues to drive us today.

SS and C is our parent company and a trusted partner to over 20,000 clients, including leaders in private equity, hedge, and asset management. Our commitment to security innovation and world class service really underscores everything that we do today.

So at Intralinks, we are very fortunate enough to sit at the center of the financial services ecosystem. Whether you're a GP, LP, fund admin, advisor, lawyer, placement agent, you likely have an ID and password to Intralinks already.

And really at the heart of what we do is connecting people, capital, and opportunities across this financial services ecosystem. And here I just wanted to highlight some of our leadership in the industry.

No other platform has the breadth of solutions that we offer, including our deal center, AI, M and A platform, and the GPLP community we have. Over the last twelve months, more than $1 of every $2 raised globally was done on our platform, and we're continuously investing in our solutions.

Over the last five years, we've invested over $200,000,000, and we're gonna continue to do so. And as I mentioned, we are backed by the expertise of SS&C, which is the largest fund administrator with over 3,400,000,000,000.

0 in assets under administration. And as I mentioned, you know, Intralinks is fortunate enough to have the largest GPLP community anywhere, and you can see the breakdown here.

Our platform really is the gold standard for fund managers and investors alike. Globally, more than 3,800 fund managers rely on FundCenter, and top tier investors including 47 of the largest 50 largest institutional investors are logging into our platform on a daily basis.

So given that we kind of sit at the center of this ALTS ecosystem, we know that fund managers face a unique set of challenges today from the, you know, current, competitive fundraising market to meeting transparency requirements from investors. And on top of that, many teams are juggling multiple platforms and really a lack of workflow automation in their technology.

We understand that these challenges can take valuable time away from focusing on your investors, building those relationships, as well as focusing on value creation, and this is really why we created FundCenter. It's a purpose built solution that helps fund managers throughout their entire fund life cycle from marketing to investor outreach, due diligence, commitment tracking, and onboarding investors all the way through to reporting and communications.

Additionally, FundCenter helps provide a seamless investor experience. Investors are able to log in to the platform with one ID and password and see information across multiple fund managers in a single platform.

And we understand that the investor relationship is extremely important to our GP clients, and that's why the investor journey is a key part of this platform. K.

So let's get into the overview of the LP survey. So this is our tenth annual LP survey, and our goal when we do this is really to gain insight from LPs around the globe, find out what they're looking for from their fund managers, and what their investment plans are for the next twelve months.

So in conjunction with Reuters, we reached out to over 280 LPs across the globe from different programs, and we asked them a variety of topics including their thoughts on allocation, AUM preferences, performance insights, and technology among other questions. And you'll see here we really surveyed a wide range of LPs globally.

Majority of them came from EMEA and North America as you'll see on the the right chart, but we also made sure to represent LPs from each region. And then on the left side, you'll see we also reached out to many different types of LPs with the majority being portfolio and asset managers, insurance companies, and sovereign wealth funds.

Okay. Now I'm gonna head into some of the select survey results, from the survey itself.

Okay. So first starting with performance.

After recent years of less than satisfactory performance, overall, LP satisfaction with performance of the portfolio portfolio has risen dramatically in the past year. So with just 4%, of LPs indicating that their alternatives portfolio underperformed last year, 60% of the LPs said that their portfolio performance had exceeded expectation, which is a sharp increase from last year, which was 16% indicated.

So it's definitely a good sign. And then when you break down those responses, you'll see sovereign wealth funds, asset asset managers, and wealth managers were particularly impressed with the portfolio performance in the past year.

However, only 29% of family office respondents said that portfolio performance exceeded expectations. Private equity, again, was once again the top performing alternative asset class this year, and that was selected by 36% of the LPs that we surveyed.

And you also see the hedge funds actually enjoyed an uptick in performance compared to last year's survey. So this year, 30% of LPs selected hedge as having delivered the best risk adjusted returns last year.

And last year's survey, only 7% said that for hedge funds. So definitely a rise there.

I think this was interesting. So almost all the LPs that we surveyed, 96%, did expect to increase their allocations to alts over the next twelve months, and about half of them are looking to increase that allocation between 46%.

So while allocations are going up, the increase is expected to be smaller than last year. So as I said, majority of LPs expect the in to increase allocations by 6% at most, whereas last year's survey had a majority of the LPs looking to increase their allocations by 10% or more.

So I think this is hinting at some degree of market trepidation by these l LPs. So, again, I think private equity, you'll see, will be likely the leading beneficiary of this increase in allocation to alts given that you see here 48% of the LPs expect to be overweight to the asset class.

And then you can see kind of the breakdown of other asset classes here, but private equity definitely is the pack as it really has in the last few surveys. When we ask the LPs, what they were concerned about, the two things on the top of their list of concerns are inflation and interest rates, which I don't think, you know, is surprising.

Inflation has obviously cooled off a bit and rates are setting starting to come down, I think, just not as quickly as many had hoped. Investors are definitely still keeping an eye on both of these topics, especially with the added uncertainty around potential trade wars and tariffs.

And another shift we're seeing this year is growing concern around equity market contraction. So nearly a third of LPs you'll see here, 32%, flag that as a top issue, and that's up from 19% in last year's survey, I think, which really highlights how much more cautious investors have become over the last year.

In terms of trends in the market, co investments continue to stand out as one of the most attractive opportunities for investors. So 37% of LPs selected co invests as the most interesting trend, which, again, I think is unsurprising.

And then continuation funds are also of interest to LPs at 19%. And we obviously know, that GPs are increasingly turning to continuation funds to provide LPs with liquidity options amidst really slower exit environment, over the last year.

I think something that was that also was pretty notable this year was the regional shift in investment preference. So The UK and Europe have now overtaken North America as the preferred region of investment.

Last year, three quarters of LPs, so 75 of of LPs favored North America, and that's dropped to about half. So while interest in UK and Europe has climbed to 54% from 49%.

And just a note here, investors were able to select multiple regions, so that's why you're getting numbers that are adding up to over over a 100%. But I think this really seems to reflect caution around US volatility in a sense that European markets, you know, while not without challenge, offer relative stability.

And then interest in Europe and The UK was also noted in the Deloitte's most recent CFO survey, which found UK tied as the top investment location. So definitely seeing that a bit more.

In terms of sectors, the preferred sectors of choice for LPs were were financials, technology, and renewables. So while financials are broadly popular, some investors, specifically family offices and wealth managers, expected expressed a greater pull towards the technology and renewables sectors.

The financial sector is also more popular with LPs from sovereign wealth funds and portfolio and asset managers. In terms of renewables, the outlook for clean energy is definitely still somewhat a bit uncertain, particularly in The US with the introduction of the big beautiful bill, which repeals much of the clean energy supports and tax incentives from the Inflation Reduction Act under Biden.

So as we've spoken to kind of more LPs, I think many believe that defensive sectors will be prioritized in the next year given global macro macroeconomic trends and tariff uncertainty. So investors may be looking at sectors like consumer staples, utilities, and health care going forward.

For those LPs that are looking to invest outside of more traditional alternatives, we see an increase in appetite for investments in emerging alternatives such as digital assets, which includes crypto, impact investments, and private credit. A significant majority, so 86% of the LPs that we spoke to said that they either currently invest or plan to invest in such assets.

And investments in emerging alts are being driven by a mix of factors as shown on the bottom graph here. So LPs are not just seeing long term growth potential in these assets.

They're also seeing these investments as a way to really diversify their portfolio and, obviously, they view them as an attractive return potential as well. 75% of the LPs that we spoke to are planning to increase the number of GP relationships relationships they hold over the next twelve months, which is an increase of 13% from last year's survey, which I think is surprising to a lot of fund managers.

I think given the fact that LPs felt their portfolios performed better than expected, I think it's unsurprising that they're looking to maybe increase their GP relationships. That being said, I think we're definitely seeing those managers with a bit of a track history, you know, solid performance and experience being favored.

First time funds we're seeing are definitely having a bit harder time attracting LPs in the current fundraising environment. LPs are also growing more discerning about the GPs that they choose to back.

The strong focus is on their investment strategy. Over half of the LPs identified investment strategy as a key factor in the decision making process with sector specific expertise all also highly ranked.

I think both of these high you know, highlight the critical importance of GPs demonstrating the ability to effectively adapt their investment strategy and leverage sector specific knowledge where it makes sense to navigate the changing conditions in the market. So the need for flexibility and agility in the market is really also influencing the fund sizes that LPs prefer.

The most favored range you'll see here is between 500,000,000 and a billion, which was cited by 38% of the respondents, which is really a trend that we've been seeing over the last few years. One LP that we spoke to referred to this range as the golden middle for sustainable fund development, saying they're really not too small nor too bloated.

And then another LP expects preference for these middle market funds, noting that they're more likely to stick to their primary plan, unlike larger funds that sometimes deviate to accommodate additional capital. So definitely that that middle market is becoming kind of the sweet spot for LPs as we've been talking about the last few years.

And so in terms of the relationship between GPs and LPs, that relationship really has surpassed expectations this year according to our survey. Nearly a third of the LPs rated these relationships as excellent, while an additional 58% described them as good.

With, favorable returns over the year, LPs have definitely had, I think, less reason for dissatisfaction. And while they have you know, these relationships have improved, like I said, over the last couple of years, there's definitely some work that can be done.

As I mentioned, you know, the there's been a portfolio in improvements portfolio performance improvements since last year's study, but 21 of LPs still cited portfolio performance concerns as their biggest frustration with GPs. And, additionally, fourteen percent expressed dissatisfaction with the lack of access to co investment opportunities, which makes sense because we know that's one of the trends that really, interest LPs the most.

LPs also identified areas for improvement in communication and reporting. And when we asked LPs what would help improve their relationships with the l with GPs, Access to better quality digital communication interfaces was selected by 25%, and enhanced reporting analytics was selected by 23%.

So I think, these preferences really underscore the need for GPs to enhance their technology capabilities that there's still, you know, room for progress in this area. Switching to deal activity, a significant majority, so 86% of LPs, expect deal activity to pick up in the next year with 27% expecting it to increase significantly.

So I think while we haven't seen the uptick in deal activity we expected for this year from last year's survey, there's definitely optimism that 2026 will be a better year for deals. We every year, we put out a deal maker sentiment report as well, and we're working on that currently.

And that survey is really showing optimism from PE dealmakers who are a bit more be bullish about deal prospects in 2026. And so continuing on that kind of in terms of valuations, 87% of the LPs we spoke to reported improved valuation stability over the past year with 23% noting significant improvement.

And I think the good news is also that LPs are expecting improved valuation stability over the next twelve months as well with only 3% anticipating a decline. So, obviously, valuations remain a critical focus for investors.

39% of them said that the need for GPs to clearly explain valuation methods and assumptions was key to enhancing transparency and trust, along with 18% saying they were looking for data backed evaluations, which, again, I think is unsurprising. In terms of technology, I think the good news here is that GPs are largely meeting expectations.

Just 1% of respondents said that they were dissatisfied with the technology capabilities of the GPs that they invest with, while 40% describe themselves as very satisfied. So while satisfaction levels are high, there are definitely ways to improve.

You'll see here the use of disparate dashboards requiring multiple logins and a lack of access to analytics were the most common frustrations noted by LPs. Investors, we find, are really looking for a single platform that offers, you know, more consistent analytics in terms of improvements to monitoring investments by GPs.

And so investors really are looking at two areas in particular when they're looking to monitor their investments by GPs. They're looking at an improved ability to forecast cash flows and improved portfolio monitoring.

Next, Generative AI, which obviously continues to be a hot topic, not only in alts, but I think in general. A significant majority of the LPs that we spoke to said that they have used generative AI or similar functionality to monitor investments or performance.

And additionally, an even larger majority, 92%, consider the technology to to be potentially transformative for how they monitor investments or performance. In terms of transparency, last year's survey found that while 7% of LPs describe the level of transparency provided by their GPs as below average or poor and equal amounts.

So another 7% described it as excellent with the remaining falling in between the two. So 86% was in between the two.

This year's surveys you see here reveals a significant increase in the level of transparency, which I think is a great, thing. So 43% of LPs describe today's transparency as above average, while 38% describe it as excellent.

And this year, only 1% suggested that transparency levels are below average. Obviously, improvements can always be made to transparency, and LPs ranked more regular reports and or reporting as key to improving transparency.

And kind of along those lines and align along the lines of reporting, almost all of the LPs that we surveyed said that the newly released ILPA template, which goes into effect starting next year, would, in fact, improve transparency. The new template replaces the one that was last updated in 2016 and really just introduces a lot more standardization.

And then switching over to ESG, this year's survey shows that ESG remains an important consideration for LPs despite attitude shifting significantly in the recent political climate. You'll see here that a significant majority, 77%, said that a fund manager's ESG strategy was very important during the due diligence phase.

Okay. So I know there was a lot to run through everybody, but kind of highlighting these are kind of some of the key highlights here that I just walked through, some of the key themes.

And now that we've kind of gone through those, I'm happy to answer any questions you have about the survey in general. If you wanna add those to the q and a section, I can, answer some of those.

Okay. Alright.

Let's get started here. So, when did you complete the survey? So it's a great great question.

Probably should have mentioned that at the beginning. So we completed the survey.

The time period was, April to about July. So I think, you know, we we definitely have a great time from there.

It was, you know, I think we caught a lot of things going on in the global economy, but, obviously, anything that's happened kind of second half this year would not be in the survey. But then we were asking them to ask us for the next twelve months, but they were looking forward, you know, to so into 2026.

Okay. Are you planning to do a GP survey? So, we've actually done a GP survey in the past.

We do not have plans to do any right now, but it's definitely something we might do. If you're interested, please let us know.

We do as I mentioned, we do an annual deal maker sentiment survey, and we are completing that right now. And that should be out towards the end of the year, and that will be forward looking into 2026 as well.

As I mentioned, we're seeing that dealmakers are being, you know, a bit more bullish, in 2026. And private equity, I think, is even more bullish than kind of their corporate counterparts on the deal making side.

So that's more to come there, but that's that'll be coming out towards the end of the year, again, with a forward looking focus to, 2026. Can I get a copy of the LP survey? Yes.

So we will be sending an email following this, and you should have hopefully seen that ticker going across. You could download it there, or you'll be getting an email within the next day or two with follow-up where you can actually access the LP survey as well.

Does SS&C have an investor portal? Yes. We do.

So FundCenter that I mentioned kind of on the first couple of slides is our investor portal. And so, again, it helps fund managers throughout their entire fund life cycle from when they're fundraising to the onboarding investors.

And then, ultimately, when they're reporting out to investors, they can use our fund center platform to share information securely with their investors, including those alpha templates that investors are saying are highly transformational and give them lots more transparency. So, we do have our fund central platform.

Happy to if anyone wants to reach out, happy to to give anybody a demo for what that looks like as well. Question here.

What role do you think AI plays in improving the fundraising due diligence process for LPs? Great question. As I said, everyone's talking about AI these days, and Intralinks is same page.

So we started our kind of AI focus in about six years ago where we put together a team, and we've been looking at ways that we can introduce AI into our products kind of across the board. We definitely see the transformative nature of AI, and we're continuing to invest in that technology to help improve our platform.

So one of the things that we're looking at that we'll be shortly rolling out, is using AI to help fund managers complete the DDQ process. So we know that's a really big headache during the fundraising process, and using AI to really help, fill those DDQs out and save time and effort, just to give them a first pass of the DDQ is kind of what we're looking at now.

So we're really excited about that and looking at other ways, to incorporate AI. We're working with LPs on extracting data from their documents as well.

So lots to come on the AI front, but definitely we see the transformative nature of AI for sure. K.

And then will this recording be sent as well? So, yes, you will in that email, you'll get, a copy of the recording as well as, the LP survey. And I think someone asked ILPA question mark, and I think I think I answered that question.

You know, we asked LPs about the ILPA template, the reporting template that was just launched. If they find that, that's gonna provide additional transparency in almost all of them, so that would we work with ILPA, on really getting anything into our platform that we can.

So they also released a DDQ, I believe last year that we're looking at incorporating into our platform as well. So, you know, we definitely have a close relationship with ILPA on making sure that the LPs are kind of getting what they're looking for and the transparency that they require in our own platform.

Okay. Oh, what is the acronym for ILPA? That's a great question.

I'm sorry. I didn't say that.

So ILPA stands for Institutional Limited Partners Association. So it's an association run for LPs, and really, they get feedback from people in the industry as well.

But so when they created this reporting template that they pushed out, it's really a guideline for GPs to use that reporting template so there can be more standardization across the industry. And when they created that template, they did get feedback from LPs, from GPs, from service providers.

So SS&C helped in the creation of that template. So it's not just coming from the LPs themselves.

It's really getting feedback kind of across the industry. So hopefully that answers your question.

Great. I think that is all the questions we have.

We have a couple minutes left, but, thank you all so much for joining me today. I hope you found it informative, and looking forward to next year's survey.

Thanks so much.