​Winning in Private Markets: Decoding Allocator Decision-Making

​We’ve recently completed the analysis for our US Private Markets Study, produced in partnership with FT Commercial.  

​Our research provides a data-driven view into how institutional allocators evaluate, select, and engage with Private Markets managers in today’s world.  

​Our full report “How Allocators Select Private Market Managers: Insights from 300 US Institutional Investors” is now available. If you’d like more information or a tailored briefing for your team, please contact Stephen Whitten, Practice Lead – Asset and Wealth Management.

​About the Study 

​Our sample includes 300 US institutional investors, all currently active in Private Markets.  

​Every participant manages at least $1bn in AUM, and collectively the group represents over $6.4trn in assets. With an average 20% allocation to Private Markets, the study captures insights from more than $1.3trn in committed capital—around one-sixth of the total US Private Markets universe. 

​Key Findings 

​Diversification across managers is increasing: Limited Partners (LPs) employ an average of 22 managers across Private Equity, Private Credit, and Real Assets, highlighting a complex and competitive selection environment. 

​Private Equity remains the most competitive category: LPs use roughly nine PE managers on average. Yet even within this crowded field, leading General Partners (GPs) command outsized share—often capturing up to 50% of an LP’s total PE allocation. 

​LPs segment into three distinct behavioural profiles: Our analysis identifies clear subgroups, ranging from highly confident allocators willing to back first-time funds, to more conservative LPs who concentrate commitments with one or two managers and rely heavily on investment consultants. 

​Brand drivers vary by firm type: Our brand driver model quantifies the attributes that most influence manager selection—and how expectations differ between Private Markets specialists and multi-asset “whole-of-market” firms. 

​How Firms Are Using These Insights 

​Clients are already applying the findings to: 

• ​Assess their performance on the attributes that actually drive manager selection 
• ​Evaluate whether their value proposition resonates consistently across asset classes 
• ​Understand their competitive set within each Private Markets vertical 
• ​Tailor marketing and engagement strategies to distinct LP segments 
  

​What’s Next 

​Our full report “How Allocators Select Private Market Managers: Insights from 300 US Institutional Investors” is now available. If you’d like more information or a tailored briefing for your team, please contact Stephen Whitten, Practice Lead – Asset and Wealth Management.