"Large private-market deals are increasingly built with partners of all sizes. Nine of the top ten largest sovereign wealth fund deals in 2025 were co-investments with private equity firms. SWFs are not only allocating to managers, but they are also often investing alongside them in specific transactions. And the trend is expected to continue in 2026 with an increased allocation to private equity."
"For family offices and HNWIs that are already operating in private equity and for which it is a meaningful part of their portfolios, the trend could lead to more opportunities to participate in larger deals. Alternative investments represented 44% of the average strategic asset allocation of family offices, with private equity at 21%. Family offices are also expected to raise their allocations to this segment."
Large private-market deals increasingly involve co-investments across a range of partners, with sovereign wealth funds frequently investing alongside private equity firms. Nine of the top ten sovereign wealth fund deals in 2025 were structured as co-investments, and allocations to private equity are expected to rise in 2026. Family offices and HNWIs that hold meaningful private equity exposures could see more opportunities to join larger transactions, with alternatives averaging 44% of allocations and private equity at 21%. Fund managers face added coordination, reporting, and governance demands but can attract repeat partners through flexibility, transparency, and operational rigor.
Read at London Business News | Londonlovesbusiness.com
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