Bain & Company and StepStone Group Release 2026 Private Equity GP Outlook

Core Insights - The survey conducted by Bain & Company and StepStone Group reveals that value creation is a critical driver of success for buyout general partners (GPs) as they navigate the evolving investment landscape in 2026 [1][3][5] - There is a sustained demand for co-investments and continued growth of secondary markets as essential portfolio management tools for GPs and limited partners (LPs) [1][3] Survey Overview - The survey was conducted between December 2025 and January 2026, gathering insights from over 100 investment and investor relations professionals primarily in North America and Europe [2] - The aim was to provide a forward-looking perspective on GPs' strategies and expectations for the upcoming year, complementing historical performance data [2] Key Findings - GPs are adapting to a challenging investment environment where traditional methods of value creation, such as multiple expansion, are no longer sufficient [5] - The most significant obstacle in deal-making is valuation disagreements, which hindered many deals from closing in 2025 [8] - Approximately 25% of GPs have launched or completed a continuation vehicle recently, with around 40% planning to explore this option in the next couple of years to return capital to investors [8] - Fee pressures are reshaping fund economics, with about one-third of GPs offering scale or early-bird discounts to investors during their last fundraising [8] - The impact of AI is most pronounced in deal sourcing and due diligence, with GPs reporting the highest returns from generative AI in these areas [8]