July 01: Raising capital has become more demanding for private equity fund managers, with increased due diligence requirements and regulatory uncertainty now the biggest barriers in the market, new research* from Ocorian, a leading U.S. and global asset services provider, shows.
The study of 300 senior executives at private equity fund managers across the U.S. and Europe, whose firms manage a combined $3.511 trillion in assets, found that 62% say raising capital has become slightly more difficult in 2026 compared with 2025. However, the picture is not uniformly negative: 32% say fundraising has become slightly easier, while 5% report no change.
The findings suggest that the capital-raising environment is becoming more selective rather than simply more constrained. More than half of respondents – 51% – say investors are increasing the number of specialised managers they allocate to, while 42% say investors are maintaining stable manager relationships. Just 5% say investors are consolidating with fewer managers.
When asked about the biggest barriers to raising capital, 63% of managers cited increased due diligence requirements, making it the most common challenge. Regulatory uncertainty was cited by 57%, followed by overallocation constraints at 48% and LP reallocation away from alternatives at 38%.
The research also shows that valuation methodologies have become the most prominent risk area in investor due diligence. More than half of respondents – 51% – identified valuation methodology as the area now receiving the greatest scrutiny, ahead of leverage and financing risk at 34%.
ESG remains part of the investor conversation, but its role appears to be changing. Nearly two-thirds of managers — 65% — say ESG is now primarily a reporting and compliance focus, while 28% say it remains important for certain investor segments.
Looking ahead, managers expect to increase allocations across a range of private market strategies over the next three years. Venture capital was the most commonly selected strategy, cited by 58% of respondents, followed by growth equity at 51% and private credit/direct lending at 49%. Renewable energy was selected by 39% and infrastructure excluding renewables by 38%.
Richard Hansford, Head of EMEA Fund Sales – Global Funds at Ocorian, said: “The capital-raising environment for private equity managers is not simply tightening — it is becoming more selective, more evidence-led and more operationally demanding.
“While most managers say raising capital has become slightly more difficult this year, a significant minority are finding conditions easier. That points to a market where investors are still allocating, but with greater scrutiny over manager selection, due diligence standards and the operational infrastructure behind each fund.
“One of the clearest findings is the growing importance of valuation methodology in investor due diligence. This is now distinct from leverage and financing risk, and it underlines the need for managers to demonstrate robust valuation processes, transparent reporting and specialist operational support as they compete for capital.”
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