Key Takeaways
- • Vistra Fund Solutions' Private Equity Report 2026 found that 45 per cent of private equity firms cite valuation and reporting complexity as a key challenge as continuation vehicles, secondaries and other liquidity routes multiply.
- • Manual processes and data handling consume an average of 33 per cent of operational team capacity, with almost two-thirds of firms reporting more than a quarter of capacity absorbed by manual work.
- • Operational constraints rank alongside regulatory or geopolitical uncertainty as a top barrier to successful exits, cited by 16 per cent of respondents.
- • Only 27 per cent of firms say they have all the infrastructure needed to support retail and semi-liquid products, though 84 per cent describe themselves as fully or partially prepared.
- • More frequent, granular LP portfolio reporting is the top limited partner demand (36 per cent), followed by fee transparency, faster onboarding and real-time fund data access (34 per cent).
Summary
Vistra, a provider of business services, has released new survey findings indicating that operational constraints now rank alongside geopolitics as a leading obstacle to successful exits for private equity firms. The Vistra Fund Solutions Private Equity Report 2026 is based on a survey of 455 private equity professionals across North America, Europe, APAC and the Middle East, conducted between August 4 and 11, 2026. Respondents represented firms managing between $100 million and $100 billion in assets under management.
According to the research, 45 per cent of firms cite valuation and reporting complexity as a key challenge, while 45 per cent also point to technology limitations and the difficulty of managing multiple stakeholder groups. Some 42 per cent cite increased regulatory and compliance obligations. The pressure is landing on operating teams already heavily burdened by manual work, which consume 33 per cent of operational capacity on average. The Middle East records the highest average manual workload at 37 per cent, while Europe reports the lowest at 28 per cent.
Firms are pursuing a broader range of liquidity routes simultaneously. Continuation vehicles, sponsor-to-sponsor sales and holding assets for longer are each cited by 16 per cent of firms as the most important route over the next 12 to 24 months, with dividend recapitalizations and secondaries close behind at 14 per cent. Vistra noted that each route carries its own operational, regulatory and reporting demands.
The shift toward retail and semi-liquid products is also exposing operational gaps. While 84 per cent of firms said they are fully or partially prepared to support such products, only 27 per cent say they already have the necessary infrastructure, processes and capabilities in place, and 14 per cent remain at an early stage. On investor demands, 36 per cent of limited partners prioritize more frequent and granular portfolio reporting, followed by fee transparency, faster onboarding and real-time fund data access at 34 per cent. Some 93 per cent of respondents said operational excellence is important to investor confidence.
Vistra Fund Solutions president Abdel Hmitti said the range of products, investors and liquidity routes firms must support is creating real operational pressure. "With LP expectations rising at the same time, firms need stronger data, more connected systems and the right external support to handle greater complexity without adding another layer of cost and manual effort," Hmitti said.
Firms are responding by shifting investment toward technology. Per the survey, 60 per cent of firms currently weight budgets toward people, a share expected to fall to 40 per cent over three years, while technology-heavy budgets are set to rise from 18 per cent to 32 per cent. All respondents are exploring or implementing at least one AI use case, yet 99 per cent identify a meaningful gap between AI ambitions and operational reality. Technology support and integration is the function most likely to be outsourced over the next three years (28 per cent), followed by investor services (26 per cent) and data management (25 per cent). Although 89 per cent say operational capabilities have moved faster than AuM growth or are significantly ahead of it, just over half describe key operating model areas as mostly or fully automated and integrated.
According to the research, 45 per cent of firms cite valuation and reporting complexity as a key challenge, while 45 per cent also point to technology limitations and the difficulty of managing multiple stakeholder groups. Some 42 per cent cite increased regulatory and compliance obligations. The pressure is landing on operating teams already heavily burdened by manual work, which consume 33 per cent of operational capacity on average. The Middle East records the highest average manual workload at 37 per cent, while Europe reports the lowest at 28 per cent.
Firms are pursuing a broader range of liquidity routes simultaneously. Continuation vehicles, sponsor-to-sponsor sales and holding assets for longer are each cited by 16 per cent of firms as the most important route over the next 12 to 24 months, with dividend recapitalizations and secondaries close behind at 14 per cent. Vistra noted that each route carries its own operational, regulatory and reporting demands.
The shift toward retail and semi-liquid products is also exposing operational gaps. While 84 per cent of firms said they are fully or partially prepared to support such products, only 27 per cent say they already have the necessary infrastructure, processes and capabilities in place, and 14 per cent remain at an early stage. On investor demands, 36 per cent of limited partners prioritize more frequent and granular portfolio reporting, followed by fee transparency, faster onboarding and real-time fund data access at 34 per cent. Some 93 per cent of respondents said operational excellence is important to investor confidence.
Vistra Fund Solutions president Abdel Hmitti said the range of products, investors and liquidity routes firms must support is creating real operational pressure. "With LP expectations rising at the same time, firms need stronger data, more connected systems and the right external support to handle greater complexity without adding another layer of cost and manual effort," Hmitti said.
Firms are responding by shifting investment toward technology. Per the survey, 60 per cent of firms currently weight budgets toward people, a share expected to fall to 40 per cent over three years, while technology-heavy budgets are set to rise from 18 per cent to 32 per cent. All respondents are exploring or implementing at least one AI use case, yet 99 per cent identify a meaningful gap between AI ambitions and operational reality. Technology support and integration is the function most likely to be outsourced over the next three years (28 per cent), followed by investor services (26 per cent) and data management (25 per cent). Although 89 per cent say operational capabilities have moved faster than AuM growth or are significantly ahead of it, just over half describe key operating model areas as mostly or fully automated and integrated.
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