Strong Returns and Rising Standards: What LPs Expect in 2027
Investors are becoming increasingly selective as they build their GP rosters, even as appetite for alternatives remains strong.
Alternatives portfolios delivered strong returns in 2026. But according to the 2027 SS&C Intralinks LP Survey, produced with Reuters Insights, performance alone may no longer be enough to secure future commitments.
Among the 370 limited partners (LPs) surveyed, 62 percent said their alternatives portfolios exceeded or far exceeded expectations in 2026, and 85 percent plan to increase their alternatives allocations over the next 12 months. However, competition for that capital is intensifying as general partners (GPs) are facing rising investor expectations. What are LPs looking for when selecting managers, and how are their evolving priorities shaping their allocation plans?
Growing allocations, more selective relationships
Most LPs still plan to add GP relationships, but their approach is becoming more selective. The share planning to expand their rosters fell from 75 percent in the previous survey to 65 percent, while the share planning reductions rose from four percent to 15 percent. Together, these shifts suggest that investors are building their manager networks with greater discipline.
Despite this growing selectivity, 88 percent of LPs rate their GP relationships as good or excellent, suggesting satisfaction alone may offer limited protection when investors reconsider which managers to retain. For GPs, the challenge is to demonstrate their value in an LP’s portfolio and consistently deliver the personalized service they expect.
Technology capability ranks ahead of track record
A strong reputation and proven track record have long helped GPs attract capital. This year’s survey puts technology and data capabilities ahead of both. Included as a manager-selection criterion for the first time, technology ranks second only to investment strategy.
Meanwhile, LPs’ expectations for technology-enabled reporting and investor service continue to rise. When asked which requirements for GPs had increased most over the past two years, 41 percent cited technology and data provision, making it the most common response. In addition, nearly a third would not allocate to a GP without a credible artificial intelligence (AI) and technology strategy. Together, these findings give managers good reason to examine whether their operational capabilities match their investment credentials.
Where LPs see the next opportunity
Technology capabilities may strengthen a GP’s fundraising case, but investment strategy remains LPs’ leading selection criterion. The survey offers an in-depth look at where LPs plan to invest and the types of managers they’re favoring.
Among respondents, 70 percent of LPs plan to increase their private credit allocations. Yet a private credit GP interviewed for the report points to a crowded direct-lending market, where competition for deals is pushing investors toward specialized strategies such as asset-backed lending.
The search for specialized strategies extends beyond private credit. Preference for managers with less than USD 500 million in assets under management rose from 28 percent to 49 percent, suggesting smaller firms with focused expertise are well positioned to win LP capital.
The full report examines these preferences alongside LP demand for different fund structures, sectors and geographies, helping GPs identify prospective investors and sharpen their positioning in upcoming fundraising conversations.
Delivering on investor expectations
As GPs refine their fundraising strategies, they must also assess how easily investors can access fund information, complete onboarding and get answers to questions about their portfolios.
Platforms like FundCentre AI™, which connects fundraising, onboarding and reporting, support these efforts by reducing manual tasks and making approved information easier to find. This gives teams more time to focus on substantive conversations about strategy, performance and individual investor needs.
For GPs planning their next fundraise, understanding where LPs intend to allocate is only part of the picture. Understanding how investors select managers can help firms target the right investors, sharpen their positioning and prioritize the capabilities that matter most.
Read the full 2027 SS&C Intralinks LP Survey for insights into allocation plans in the next 12 months, manager selection criteria and evolving investor expectations to help you shape your fundraising strategy.