"Many limited partners (LPs) are ready to direct a greater share of their commitments toward managers in whom they already have conviction. A recent survey by Adams Street confirms that increasing commitments to existing managers remains the top priority for 2026, while appetite for adding new managers has fallen to a five-year low."
"The logic is straightforward. A new commitment requires an LP to assess the team, processes, reporting standards, governance structures, and decision-making culture from scratch. With an existing manager, much of that work has already been done, not through due diligence alone, but through live experience."
"Familiarity, however, only opens the door. What determines whether an existing investor re-commits is whether their experience has warranted continued confidence, and that confidence is built long before the next fundraise begins."
In the current fundraising environment, limited partners prefer to increase commitments to existing managers rather than seek new ones. A survey indicates that this trend will continue into 2026, with LPs consolidating their investments with fewer, larger managers. The rationale is that existing relationships reduce the need for extensive due diligence, as familiarity with the manager's performance and communication style has already been established. Continuous communication and demonstrated performance are crucial for maintaining investor confidence and securing re-commitments.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]