LPs increasingly adjust private markets commitments

Limited partners are maintaining their private markets commitments but changing how they build them, according to Goldman Sachs's 2026 global alternatives survey. Nearly half of the 225 respondents (47 per cent) plan to keep their current exposure, more than one-third (37 per cent) expect to deploy more capital than last year, and only 11 per cent intend to deploy less. The survey captures views from public and private pensions, insurance companies, endowments, foundations, sovereign wealth funds and family offices, with an almost even split between respondents based in the Americas and EMEA and less than 20 per cent in APAC.

A meaningful share of LP commitments over the past 12 months were re-ups with existing general partners. When adding new managers, 78 per cent of LPs say track record matters most, with around half also flagging access to new strategies or asset classes, followed by specialist expertise (39 per cent) and sector or regional diversification (35 per cent).

Marc Nachmann, global head of asset and wealth management at Goldman Sachs, said LPs "are not retreating, they are rethinking where to deploy capital, with whom, and on what terms," adding that their confidence in private markets "remains intact" but that they are taking a more selective approach focused on managers who can deliver value creation. Mike Brandmeyer, global head and chief investment officer of the external investing group at Goldman Sachs Alternatives, said that "new managers have to earn their allocations," noting that investors now look for underwriting discipline, a clear edge over competitors and the ability to adapt to structural shifts, especially those driven by AI.

The survey also found that geopolitical risk remains the top investment risk for LPs for the third straight year, yet respondents continue to deploy capital into private markets.