Institutional Allocation Study 2026

Private markets remain strategically important to institutional portfolios, but slower capital recycling and weaker distributions are prompting investors to be more selective about where they commit new capital

• Average institutional allocations to private markets have trended upward since 2021, approaching levels that more closely resemble the 50/30/20 portfolio rather than the traditional 60/40 model

• A slower capital cycle has prompted greater selectivity from investors, with weaker distributions from realizations moderating the level of capital available for fresh private market allocations

• Investor intentions are becoming increasingly differentiated across asset classes, highlighting where institutions see the strongest long-term opportunities across private markets