Private Markets Enter a New Era of ‘Selective Growth’, Gen II Research Reveals

Published on: March 3, 2026

Managers expect continued allocation growth, but with increased discipline, divergence between strategies and rising operational scrutiny.

London, — Private markets across the UK and Europe are entering a new phase of “selective growth,” according to the latest findings from Gen II’s Core Alternative Managers’ Mood Index (CAMMI). The data shows that while managers remain confident in the long-term trajectory of private markets, they are applying sharper discipline to their asset class allocations.

The headline CAMMI score eased from 56.48 to 54.56, marking only a slight moderation in sentiment, but one that reflects an important shift. The report states that the slight moderation “suggests a stabilising market where managers remain confident in private market allocations, but anticipate a more measured pace of commitment growth.”

Managers continue to expect allocations to grow across most asset classes over the next 12 months, but more slowly since Q1 2025:

Fig 1: Asset allocation growth / decline expectations over time

A CAMMI score above 50 signals growth (higher means faster growth), while below 50 signals decline (lower means a sharper decline).

• Growth Capital remains one of the strongest performers, with a CAMMI score of 60.40 suggesting strong increases to allocations. This score is driven by 46% of managers expecting allocations to increase, 28% expecting no change, and 26% expecting a decrease. 
• Buyout sentiment has softened significantly, falling to 45.21 from 56.45, showing a slow level of allocation decline is expected over 12 months. Only 27% of managers are expecting an increase in their allocations to the asset class, with 37% expecting allocations to remain the same, whilst over a third (36%) are anticipating a decrease. This reflects pressures around financing costs, valuation gaps and slower exits
• Venture Capital has declined from 60.53 to 54.80, indicating a slower level of asset allocation growth. 44% of fund managers expect an increase to allocations, 33% expect allocations to stay level and 23% expect a decrease, indicating steady but moderated optimism as managers navigate valuation discipline and slower liquidity cycles.
• Real Assets remain a portfolio anchor. Real Estate and Infrastructure maintain steady allocation expectations, with sentiment remaining above the growth threshold, underscoring their ongoing role as a stabilising component of private market portfolios. 
• Private Debt has eased from 53.70 to 51.30, displaying a balanced picture, with 38% expecting an increase, 31% no change, and 31% expecting a reduction in asset allocations, highlighting a more selective approach to underwriting and credit deployment. Growth is still expected in this asset class, but at a very slow rate.
• Secondaries present a dramatic shift, surging to 62.24, the highest CAMMI score of all strategies and up from a decline of 40.24. This new higher score indicates very fast allocation growth into the asset class, with almost half (49%) of managers expecting allocations to increase, 22% expect no change and 29% anticipating a decrease. This highlights strong demand for liquidity solutions.

Michael Johnson, Chief Commercial Officer at Gen II, emphasised the scale of this shift: “Looking across the asset classes, what we’re seeing is a market getting smarter. Growth Capital is holding up well, Secondaries have come roaring into first place, Real Assets have stabilised and strategies like Venture and Private Debt are settling into a rhythm. The pullback in Buyout sentiment tells you managers are thinking harder about pricing, leverage and exit routes. In our view, this is exactly what a healthy, maturing private markets ecosystem should look like – capital is still flowing, but GPs are expecting it to flow selectively into the most attractive opportunities.”

Gen II’s new CAMMI results suggest that alternatives fund managers are navigating a more balanced, selective and disciplined investment environment, one where strong strategies continue to attract capital, while underperforming areas face sharper investor scrutiny. 

Despite this moderation, overall sentiment remains firmly in positive territory, indicating that allocations to private markets are expected to grow through 2026, albeit in a more targeted manner. A small decline in sentiment across most asset classes means, in Gen II’s view, managers can be confident, but not complacent.

To view a summary of the 5th CAMMI survey results and insights, please click here.

About Gen II Fund Services

Gen II is a leading provider of tech-enabled fund administration for private capital asset managers and investors. Distinguished by its bespoke service offerings and robust technological infrastructure, the company has grown to become one of the largest independent private capital fund administrators since its inception in 2009, now overseeing $1 trillion+ of private fund capital.

 Gen II serves a full spectrum of fund managers, from emerging managers to large funds operating across multinational jurisdictions. Its transatlantic operational reach redefines excellence in the fund administration sector, enabling unparalleled service capabilities to fund managers and investors globally. The company helps GPs navigate complex international markets and regulations while effectively managing their operational infrastructure, financial reporting, and investor communications. Gen II is powered by sophisticated proprietary technologies, including Sensr Solutions, a software suite designed to elevate fund management, analytics and investor experience. For more information, please visit gen2fund.com.

About CAMMI

Through the responses provided in each CAMMI survey, a score above 50 signals rising allocations: below 50, a decline. With an overall score of 56.56 for Q4 2025, UK and European fund managers remain optimistic that investor allocations will grow over the next 12 months.

CAMMI (the Core Alternative Managers’ Mood Index) measures allocation sentiment across private equity, real assets and private credit on a scale of 0 to 100.

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