Adams Street Partners’ 2026 Global Investor Survey Reveals a “Great Recalibration” in Private Markets
Adams Street Partners, LLC, a leading private markets investment management firm with more than $65 billion in assets under management (“Adams Street”), today released its 2026 Global Investor Survey, the firm’s sixth annual report. Findings point to a shift in investor behavior: confidence in private markets remains strong, but capital is being deployed with greater selectivity, discipline, and urgency around liquidity.
Titled The Great Recalibration: Liquidity, Discipline, and a More Selective Opportunity Set, the report captures an industry at an inflection point. While 84% of respondents expect private markets to outperform public markets over the long term, investors are reassessing pacing, manager relationships, and portfolio construction in response to constrained distributions, geopolitical risk, and rapid technological change.
“Private markets are no longer in an era of easy liquidity or multiple expansion,” said Jeffrey Diehl, Managing Partner & Head of Investments at Adams Street. “This is a more demanding environment, one that is poised to reward operational excellence, sector specialization, and disciplined underwriting. The investors and managers who succeed are viewed as those who treat liquidity as a strategy, not an assumption.”
Liquidity Moves to the Center of Strategy
Liquidity constraints are now the defining issue for private market investors. Nearly all respondents (90%) expect liquidity pressures to influence their strategy in 2026, with two-thirds anticipating a high or moderate impact.
As distributions lag historical norms, LPs are increasingly turning to secondary market options including continuation vehicles, to help manage cash flows and rebalance portfolios, and to co-investments with the goal of directly accessing high-quality assets often for a lower all-in total cost. Amid lower liquidity, fundraising has softened, and fewer LPs are increasing commitments to existing managers—down to 53% from 67% previously—while appetite for adding new managers has fallen to a five-year low.
In response, investors indicated they are concentrating capital with managers demonstrating repeatable alpha, deep sector expertise, and alignment of incentives. Governance remains a cornerstone of conviction, with 85% of LPs citing management incentive structures as a material driver of private markets outperformance.
The Rise of Selectivity—and the Middle Market
Market volatility has emerged as the top investment challenge, cited by 40% of LPs, closely followed by interest rates and inflation at 39%. In this environment, 72% of respondents expect middle market funds to outperform large and mega buyout funds, reflecting a preference for operational value creation over scale and leverage.
Rather than expanding rosters of manager relationships, many LPs are consolidating around high-conviction partnerships. Co-investments are increasingly seen as a structural allocation, offering greater transparency, fee efficiency, and portfolio precision.
Secondaries, meanwhile, have moved from opportunistic tool to strategic allocation, as investors seek both liquidity and attractive entry points in a slower exit environment.
Europe Surpasses North America for the First Time
In one of the survey’s most notable findings, Europe overtook North America as the most attractive region cited by LPs for private markets investment in 2026.
Respondents pointed to valuation appeal, policy support, and opportunities in the European mid-market as key drivers. While North America remains core to most portfolios, geopolitical tensions and concentration risk are prompting LPs to diversify more actively across geographies.
At the same time, geopolitical risk is intensifying as a strategic consideration, with nearly nine in ten LPs expecting it to have a meaningful impact on private market strategies—led by concerns around US-China relations.
AI Becomes a Baseline Capability
Artificial intelligence is rapidly moving from thematic opportunity to operational imperative. Technology disruption is now cited by 28% of LPs as a key risk—up sharply from 17% last year—reflecting AI’s growing influence on valuations, competition, and business models.
At the same time, technology and healthcare remain among the most compelling sectors for 2026, alongside co-investments, each cited by 39% of respondents as offering the most attractive opportunities.
“AI is no longer a ‘nice-to-have’ differentiator,” said Diehl. “It is a value driver. Investors expect managers not only to access AI-enabled businesses, but to embed AI capabilities across their portfolios to enhance sourcing, diligence, and operational performance.”
Key Findings from the 2026 Global Investor Survey:
Resilient Conviction: 84% of LPs expect private markets to outperform public markets over the long term
Liquidity as a Strategy: 90% expect liquidity constraints to shape their 2026 strategy
Europe in the Lead: Europe surpasses North America as the most attractive region for LPs to deploy private markets capital
Middle Market Advantage: 72% favor middle market funds over large and mega buyouts
AI as Imperative: Technology disruption concerns rise to 28%, up from 17% last year
More Selective Capital: Only 53% plan to increase commitments to existing managers, a sharp decline from prior years
Co-Investments and Secondaries in Focus: Co-investments rank among the most attractive strategies for 2026, and LPs are increasingly using secondaries to help manage liquidity
After years defined by abundant liquidity and rapid capital formation, we think the 2026 survey signals a more deliberate phase for private markets—one shaped by disciplined deployment, creative exit strategies, and operational value creation.
About Adams Street Partners
Adams Street is a global investment firm managing a comprehensive suite of private markets investment solutions. The firm provides private equity and private credit strategies to institutional investors, growth capital to innovative companies, and evergreen funds that offer access to multiple strategies through a single, investor-friendly commitment. The firm also supports wealth advisors with private markets solutions structured to be more flexible and accessible than traditional closed-end funds. With over 50 years of experience, Adams Street leverages deep market insights, global relationships, and proprietary data as it seeks to help investors achieve long-term investment goals. The firm is 100% employee-owned, manages $65 billion in assets, and operates out of 15 offices globally.
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