Key Takeaways
- • Brown Advisory, which manages $12bn in assets for endowments and foundations, reports "stronger demand than ever" from limited partners for venture capital funds, according to leader Brett Johnson's comments in PEI Private Equity.
- • Limited partners are reportedly anxious about concentrated AI exposure in public markets and are leaning more heavily into venture capital this year to diversify high-growth assets.
- • The last six months have brought new demand for both established general partners and emerging managers after a difficult stretch for venture fundraising, per the publisher's summary.
- • Endowment and foundation allocations to private markets have grown over time, with OCIO platforms playing a growing role in institutional portfolios.
Summary
Brown Advisory, an outsourced chief investment officer (OCIO) manager with $12bn in assets for endowments and foundations, says limited partners are showing stronger appetite for venture capital funds than at any point recently, according to a February 24, 2026 report by PEI Private Equity. The article quotes a Brown Advisory leader describing the shift in demand.
The driver, as described in the article, is LP concern about the concentration of artificial intelligence exposure in public equity markets. Investors are reportedly turning to venture capital to diversify their exposure to high-growth assets, with the trend intensifying during 2026.
The publisher's summary notes that venture fundraising had been difficult before this period. Over the last six months, demand has reportedly returned for established general partners as well as emerging managers, marking a notable change from the preceding stretch.
Broader context from the publisher's related coverage indicates that endowments and foundations have steadily increased private market allocations. Average private equity and venture capital allocations in one OCIO analytics universe rose from 5.8% in Q1 2021, and smaller endowments and foundations have been adopting the OCIO model to access private markets.
The driver, as described in the article, is LP concern about the concentration of artificial intelligence exposure in public equity markets. Investors are reportedly turning to venture capital to diversify their exposure to high-growth assets, with the trend intensifying during 2026.
The publisher's summary notes that venture fundraising had been difficult before this period. Over the last six months, demand has reportedly returned for established general partners as well as emerging managers, marking a notable change from the preceding stretch.
Broader context from the publisher's related coverage indicates that endowments and foundations have steadily increased private market allocations. Average private equity and venture capital allocations in one OCIO analytics universe rose from 5.8% in Q1 2021, and smaller endowments and foundations have been adopting the OCIO model to access private markets.
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