New Fund Structures and Investor Types Bring New Challenges

Asset Management in 2027

The U.S. asset management landscape is quickly evolving. As exit timelines lengthen, institutional capital becomes more selective, and investor demand for liquidity evolves, asset managers are compelled to reassess how they raise capital, structure funds, and position their firms for sustainable growth.

Citrin Cooperman’s forthcoming 2027 Asset Management Survey Report offers a closer look at these shifts. Drawing on responses from more than 300 asset managers across the country, the third annual report explores how private equity, private credit, venture capital, and hedge fund firms are navigating a market defined by competing pressures.

New Sources of Capital

One central theme of the survey’s findings is how rapidly the fundraising environment is changing. With many institutional investors managing constrained capital resources and favoring established managers, smaller and middle-market firms are increasingly looking beyond traditional limited partner relationships.

High-net-worth individuals are now the leading current source of capital among surveyed managers, cited by 62% of respondents, while 55% are targeting this group for future inflows. Money managers and advisors are also becoming increasingly important channels, selected by half of respondents — up from 38% in last year’s survey.

Managers are also broadening their reach to other investor groups. More than 70% of respondents are already raising or actively pursuing capital from strategic or corporate investors, retail and mass-affluent investors, defined-contribution or retirement plans, and sovereign wealth funds. This expansion brings meaningful opportunities, but it also introduces new considerations around fund design, investor communications, regulatory requirements, operations, and tax planning.

Liquidity Takes Center Stage

At the same time, the pressure to create liquidity remains acute. Nearly 8 in 10 respondents experiencing exit delays expect conditions to hold steady or worsen over the next year, with limited IPO opportunities and economic uncertainty among the key drivers.

But managers are not standing still: 95% of firms affected by delays say they are at least somewhat prepared to manage through them. Many are pursuing alternatives to traditional exits, such as secondary funds and continuation vehicles, and strengthening portfolio-company operations to improve readiness when opportunities emerge.

Fund Structures Evolve

That search for flexibility is also shaping the next generation of fund products. Among respondents planning new offerings, evergreen funds lead the way, with 45% expecting to launch one in the next 12 months. GP-staking funds and secondary funds follow closely, at 39% and 37%, respectively. These structures can help managers address demand for new capital sources, liquidity options, and longer-term asset management strategies — but they also require thoughtful approaches to governance, valuation, compliance, reporting, and operational execution.

Different Strategies, Shared Pressures

The report also examines how developments differ across market segments. Private equity firms are pursuing new capital sources aggressively despite significant exit exposure. Private credit managers are balancing continued opportunity with selective deployment and heightened scrutiny of returns and defaults.

Venture capital firms are casting a wide net for capital as they seek to participate in the AI-driven investment cycle, while hedge funds continue to benefit from volatility and investor demand for comparatively liquid strategies.

AI Moves from Experimentation to Execution

Across these segments, artificial intelligence is becoming an increasingly important business consideration. AI adoption is nearly universal among surveyed managers, and 71% of firms using AI report a positive return on investment to date. The strongest reported efficiency gains are in management company operations, regulatory reporting, and data analysis.

Data security and privacy remain the leading barriers to broader adoption, underscoring the importance of governance and human oversight as firms expand their use of these tools.

Prepare for What’s Ahead with Citrin Cooperman

Citrin Cooperman’s 2027 Asset Management Survey Report, launching in November 2026, will provide benchmarks and practical insights for managers, investors, and other stakeholders working to adapt in a more complex private capital environment. Reserve a copy of the full report to understand the forces reshaping fundraising, liquidity, fund structures, and technology — and what they could mean for your firm’s next move.