2026 Investor Sentiment and Outlook (AVCA)

Summary

• The survey draws on 29 Limited Partners (LPs) managing US$766bn globally and 69 General Partners (GPs) collectively overseeing US$16bn.p.3
• Net sentiment toward dealmaking strengthened to +0.6 among LPs and +0.8 among GPs.p.3
• 27% of LPs expect to slow their commitments pace in 2026, compared to just 4% a year prior.p.3
• Infrastructure was identified as a compelling sector for private credit by 48% of LPs and 42% of GPs.p.4
• Geographic preferences continue to centre on Africa's 'Big 4' economies, with interest in frontier markets such as Uganda and Senegal signalling a measured broadening.p.4
• Fund managers are seeking to diversify their investor base beyond development finance partners, targeting family offices, pension funds, and sovereign wealth funds.p.4

Key insights

1. Both LPs and GPs expect an active dealmaking environment in 2026, supported by improving macroeconomic conditions, strengthening pipelines, and more attractive entry valuations.p.3
2. Most investors still anticipate maintaining or increasing exposure over a three-year horizon despite near-term caution on the pace of LP commitments.p.3
3. Financials, Technology, and Energy remain central to investment strategies, supported by digital transformation and infrastructure needs.p.4
4. Private credit is gaining prominence as a key growth frontier, with corporate finance, commercial finance and consumer finance featuring in investor priorities.p.4
5. GPs place particular emphasis on engaging institutional investors based in Africa as they diversify their investor base.p.4