There is s strong sign that the IPO window may be reopening, with a boost to the number of companies listing this year, but it could be the Asia-Pacific region that could benefit, according to the latest edition of the Coller Capital Global Private Capital Barometer.
In reveals that almost eight in ten (77%) limited partners (LPs) report that their general partners (GPs) are preparing portfolio companies for public markets, with nearly a third (32%) saying multiple GPs have shared IPO plans for 2026 and a further 45% hearing similar indications from at least some managers.
Only 9% of LPs say there have been no IPO discussions to date – a marked shift from the subdued IPO environment of recent years.
Investors continue to back private markets
For the third year running, private credit remains the private markets segment attracting the strongest near-term allocation growth.
Over the next twelve months, 42% of LPs expect to increase their target allocation to private debt or credit, more than any other alternative asset class.
However, investors are approaching the market with caution. Nearly two thirds of LPs (62%) expect return dispersion among private credit managers to widen over the next one to two years.
At the same time, GP-led secondaries are set to become further embedded in the private capital ecosystem.
Eighty five percent of LPs expect GP-led secondaries in private credit to grow further, with 65% anticipating selective growth among certain managers and strategies, and 20% expecting these transactions to become a mainstream feature of the market.
For LPs considering credit secondary transactions, opportunistic, discounted buying will be the primary motivation (31%), followed by access to seasoned assets (19%) and liquidity needs (15%).
Continuation vehicles evolve
As the market matures, LPs are increasingly encountering ‘second-generation’ continuation vehicles, with nearly two-thirds (62%) saying they have already seen, or expect to see, assets rolled into subsequent CVs.
Despite this added complexity, confidence in GP execution remains high. Three-quarters of LPs (75%) believe GPs are well-resourced to manage continuation vehicles, suggesting broad support for their evolution.
The Barometer shows that although most LPs (81%) still opt to take liquidity from continuation vehicles, almost one in five (19%) typically choose to roll their investments.
This indicates growing comfort with these structures as long-term investment opportunities as well as exit routes.
“This edition of our barometer shows how private markets continue to evolve and rebalance across different fronts: LPs are beginning to see a path back to traditional exits through IPOs, while at the same time becoming more comfortable with continuation vehicles as a long-term feature of the market,” said Jeremy Coller, chief investment officer and managing partner of Coller Capital. “Against that backdrop, investors are quite rightly being more selective – about managers, strategies and structures – as they position portfolios for a more demanding environment.”
LPs embrace co-investments
More than two fifths of LPs (43%) say co-investments are becoming more important in their fund-selection decisions, underlining their growing influence on which managers investors choose to back.
However, access remains constrained: almost one in five (19%) say co-investments are increasing in importance but they do not have sufficient access.
Fee efficiency and deal quality remain the primary drivers of co-investment demand.
More than three-quarters of LPs (78%) cite fee rebalancing as a key motivation, while 71% say access to particularly attractive investment opportunities is a major reason for participating.
Beyond economics, 38% of LPs say co-investments help them better understand how individual GPs operate, and 29% view them as a way to build internal investment expertise.
Nearly a quarter of LPs (24%) expect to increase their use of late primaries compared with two years ago, with the majority citing the ability to see early indications of fund performance (57%) as the main motivation.
Investors to keep investment decisions human
LPs see artificial intelligence playing a growing role in private markets, particularly in shaping the careers of junior professionals.
Forty four percent believe AI adoption by GPs will enhance the career development of analysts starting today, although opinion remains divided: 36% expect it to hinder development, while 20% anticipate little or no impact.
LPs draw a firm line when it comes to AI and decision-making authority: 90% say an AI model should not have a vote on a GP’s investment committee, underscoring a clear consensus that judgement, accountability and fiduciary responsibility should remain firmly human-led.
LPs to step up Asia-Pacific allocations
Looking ahead, Asia-Pacific is re-emerging as a priority region for global LPs.
India stands out as the market attracting the strongest forward momentum.
Over the next three years, 44% of LPs expect to increase exposure to India via Asia-focused funds, with a further 28% planning increases through country-specific vehicles.
Japan also features prominently in LP plans, with 34% expecting to increase exposure via Asia-focused funds and 32% through country-specific strategies, signaling growing confidence in the depth and maturity of the Japanese market.
The Global Private Capital Barometer captured the views of 108 investors from around the world who oversee a combined $1.97trn in assets under management.
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