LPs Are All In on Private Credit and Demanding DPI
- 16 hours ago
- 2 min read
The latest Coller Capital Global Private Capital Barometer surveyed 108 institutional investors managing $1.97 trillion collectively. The message is clear: show me the money.
Why it matters: This is one of the most widely watched LP sentiment surveys in private markets, and the Winter 2025/26 edition reveals an investor base that is cautiously optimistic but laser focused on liquidity and realized returns.
By the numbers:
42% of LPs plan to increase private credit allocations in the next 12 months, the highest of any alternative asset class, for the third year running.
77% say their GPs have indicated IPO plans for portfolio companies in 2026.
49% named DPI the buzzword of 2025 in GP pitches. AI driven value creation was a distant second at 30%.
62% expect return dispersion among private credit managers to widen, making manager selection critical.
90% of LPs said no to giving an AI model a vote on a GP's investment committee.
Between the lines: Continuation vehicles have quietly become a structural feature of the market. Nearly one in five LPs now roll into CVs rather than cashing out, and 62% have seen or expect "CV squared" transactions where assets move from one continuation vehicle into another. Three quarters believe GPs are well resourced to manage these structures.
On co investments, 78% of LPs cite fee reduction as the top motivation, but 38% also use them to evaluate how GPs actually operate up close. APAC investors are the most enthusiastic, with 75% saying co investments have grown in importance.
What to watch: India and Japan are the top destinations for increased APAC private capital exposure over the next three years. India leads with 44% of LPs planning to boost allocations through regional funds and 28% through country specific vehicles. China sits at the bottom of the growth list at just 24%.
The bottom line: LPs want cash back, they want it from private credit, and they are willing to wait for the right IPO window to open. The era of paper returns carrying the conversation is over.