LPs Actively Deploy Capital to Private Equity, Remain Highly Selective

Private market investment strategies are continuing to deliver returns for limited partners (LPs) despite macro and geopolitical turbulence, rising interest rates, falling valuations and underperformance in certain asset classes.

That’s one key takeaway from the upcoming 2025 SS&C Intralinks LP Survey, produced with Private Equity Wire. The ninth annual survey gathered insights from more than 170 investors across the globe about their current investments, allocation plans for the next 12 months and general partner (GPs) selection criteria.

Ahead of the LP Survey’s release in September, 2025 LP Survey: Key Findings looks at insights uncovered in the upcoming survey, including why private equity (PE) continues to outperform other strategies, why LPs favor North America and why deal activity is expected to rebound in the next 12 months.

Private equity continues to reign despite headwinds

The overwhelming sentiment among the investors surveyed indicates alternatives continued to be favored by the LP community in the past 12 months. Thirty-eight percent of respondents from global endowments/foundations, insurance companies, sovereign wealth funds, fund of funds, family offices and wealth managers say private equity offered the best risk-adjusted returns in the last year, with 62 percent planning to increase allocations to PE in the next 12 months despite falling valuations and stretched timeframes.

LPs show a preference for North American markets

Nearly half of the LPs surveyed selected the U.S. and Canada as their preferred investment regions, with the U.K. and Europe following closely behind (31 percent). The numbers come as no surprise as the U.S. economy has outperformed other markets since the beginning of the pandemic, partly due to the recent artificial intelligence (AI) surge led by Nvidia and the sustained market domination of the "Magnificent Seven."

LPs want better tech from their GPs

Although the majority of investors surveyed are satisfied with the technological capabilities of their GPs, many believe there’s still room for improvement. Thirty percent say they’re frustrated by disparate dashboards, highlighting a lack of access to analytics as a challenge. Moreover, 47 percent of LPs express a need for improvement in their ability to aggregate data across multiple funds into a single platform, as they strive to diversify and cultivate better relationships with GPs.

Deal activity is expected to rebound

Our survey shows a prevailing optimism about deal activity in the next 12 months. Despite ongoing headwinds, an overwhelming 78 percent of LPs say they expect deal activity to pick up this year, with 15 percent projecting a significant uptick — a sentiment bolstered by the influx of new fund and deal structures inundating the private markets.

Looking forward

The uncertain outlook for the stock and bond market has diminished the appeal of traditional 60/40 portfolios, with more than half of LPs currently allocating USD 500+ million to alternatives — a number that’s only set to increase heading into 2025.

However, exercising caution and de-risking portfolios through diversification will be the name of the game going forward, as LPs strive to stay on top of the rocky macro and geopolitical climate.

For a more detailed glimpse into the upcoming 2025 SS&C Intralinks LP Survey, which will be published in September, read our 2025 LP Survey Key Findings report here.