Private markets enter an era of ‘selective growth’
05 March 2026 UK
Image: ronstik/stock.adobe.com
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 the first quarter of 2025.
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 per cent of managers expecting allocations to increase, 28 per cent expecting no change, and 26 per cent 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 per cent of managers are expecting an increase in their allocations to the asset class, with 37 per cent expecting allocations to remain the same, while 36 per cent are expecting 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 per cent of fund managers expect an increase to allocations, 33 per cent expect allocations to stay level and 23 per cent expect a decrease, indicating steady but moderated optimism as managers navigate valuation discipline and slower liquidity cycles.
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 49 per cent of managers expecting allocations to increase, 22 per cent expecting no change, and 29 per cent anticipating a decrease.
This highlights strong demand for liquidity solutions.
Gen II’s CAMMI results suggest that alternative 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.
Michael Johnson, chief commercial officer, Gen II, emphasises 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 general partners are expecting it to flow selectively into the most attractive opportunities.”
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 the first quarter of 2025.
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 per cent of managers expecting allocations to increase, 28 per cent expecting no change, and 26 per cent 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 per cent of managers are expecting an increase in their allocations to the asset class, with 37 per cent expecting allocations to remain the same, while 36 per cent are expecting 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 per cent of fund managers expect an increase to allocations, 33 per cent expect allocations to stay level and 23 per cent expect a decrease, indicating steady but moderated optimism as managers navigate valuation discipline and slower liquidity cycles.
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 49 per cent of managers expecting allocations to increase, 22 per cent expecting no change, and 29 per cent anticipating a decrease.
This highlights strong demand for liquidity solutions.
Gen II’s CAMMI results suggest that alternative 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.
Michael Johnson, chief commercial officer, Gen II, emphasises 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 general partners are expecting it to flow selectively into the most attractive opportunities.”
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