Number four of our five themes for 2025: “Platform excellence: How managers will win business tomorrow.” 

Even as the liquidity squeeze loosens over the coming year, it’s clear that LPs are becoming ever-more selective in the managers they back. So, while private markets retain their appeal — nearly all (96%) of respondents to a recent survey said they expected to increase or maintain their exposure to alternative assets in the next 12 months — the bar for attracting new commitments from existing and new LPs is rising. The same survey found that 88% were expecting to refuse a re-up with an existing manager. 

In today’s sophisticated market, where capital is concentrated among a smaller number of managers, only the highest quality platforms garner investor dollars. A consistent track record, low or no key person turnover, scale and diverse capabilities, and alignment with LPs are the bare minimum in today’s market. They may get a manager a foot in the door, but they are far from sufficient to secure a commitment.