Northern Trust Survey: 32% of LPs Struggle to Access Top Private Funds
Nearly a third of asset owners (32%) cited gaining entry to top-quartile private funds as their biggest constraint, up from 18% in 2025. Smaller allocators with under $1 billion in AUM face the greatest challenges, while 94% now invest in private markets compared to 86% last year.
1. Survey highlights access challenge
Northern Trust’s survey found that 32% of asset owners ranked gaining entry to top-quartile private funds as their biggest constraint, a sharp increase from 18% in 2025. This underscores intensifying competition for allocations among limited partners regardless of asset size.
2. Smaller allocators hardest hit
Almost half of those citing access issues manage less than $1 billion in AUM, reflecting smaller teams and shorter track records that hinder due diligence and relationship-building with top fund managers.
3. Surge in private market participation
The proportion of asset owners investing in private markets rose to 94% from 86% last year, with private equity remaining the largest exposure despite concerns over declining returns and rising interest rates.