The Principal View: Trends Shaping Private Markets — August 2026

Private markets are in the midst of a structural reset. Fee economics are shifting, the competitive landscape is consolidating, and new capital channels are redrawing the boundaries of the industry.

Written for private equity and asset management leaders, from C-suite executives to heads of fundraising, strategy, and business development, our new publication, The Principal View: Trends Shaping Private Markets, brings together proprietary Ropes & Gray data, market intelligence, and practitioner perspective to examine the forces reshaping private equity and asset management, from record-low management fees and the rapid growth of evergreen vehicles, to an unprecedented wave of industry M&A.

At a Glance

• Fee compression hits a new low – Management fees have reached record lows, with the largest funds leading the discount trend.
• The retailization of private capital accelerates – Evergreen funds and new wealth channels are reshaping how capital enters private markets.
• Asset management consolidation is intensifying – Fee pressure and rising costs are driving a wave of M&A, shrinking the global manager landscape.
• Market momentum meets mid-year headwinds – Deal value has rebounded on megadeals, but shifting macro conditions are cooling sentiment entering H2.

Key Takeaways

• Management fees under pressure across the board. The 2026 vintage mean management fee fell to a record low of 1.57%, with half of megafunds (≥$10B) now offering discounts. Growing fund sizes, LP bargaining power, and appetite for typically fee-less co-investments are compressing fees further. The 2% management fee standard is fading, and firms must recalibrate their revenue models accordingly.
• Private wealth reshapes how capital enters the market. Global evergreen AUM is projected to grow from $3.2 trillion in 2025 to $5.2 trillion by 2030 (~10.2% CAGR). Collective investment trusts (CITs) are rapidly becoming a preferred pathway for managers seeking access to the $10+ trillion defined contribution market. Managers that build scalable wealth-channel infrastructure today will capture a disproportionate share of the fastest-growing capital pools.
• Consolidation reshapes the manager landscape. M&A deal count rose 14% and deal value surged 116% in 2025 versus 2024. Global manager count is projected to fall roughly 20% by 2029, driven by fee compression, rising technology and regulatory costs, and LP mandate concentration. Capability acquisition, not generic scale, is the dominant deal rationale, with PE sponsors taking listed managers private and buyers targeting firms with scarce private-market capabilities.
• Fundraising headwinds persist. LPs are consolidating relationships with fewer, larger managers. Dollar volumes have held up as capital flows into bigger platforms, but smaller firms face growing difficulty raising capital. Whether as acquirer, target, or competitive bystander, every firm needs a clear view on how these dynamics, and what fund consents, key-person protections, and LP-alignment considerations mean for deal structuring.
• Distribution pressures show early signs of relief. Net cash flow to LPs turned modestly positive in 2025, driven by sponsor-to-sponsor megadeals, continuation vehicles, and GP-led secondaries. But the recovery remains uneven: smaller managers with concentrated portfolios continue to struggle returning capital. LPs are constructive on allocations but are rewarding managers who can demonstrate liquidity pathways.