Viewpoint: New structures for new capital

Veena Karuthasen, Commercial Director, Asset Manager Services, Ocorian

The traditional private fund rests on a simple proposition: raise long-term capital from institutional investors, lock it up for a decade and return it as assets are sold. That model still forms the bedrock, but new structures are being built on top.

Only 10% of the professionals Ocorian surveyed⁶ expect closed-ended drawdown vehicles to see the most new fund launches over the next two years. Instead, 63% point to hybrid or perpetual structures with gates, 56% to evergreen or open-ended funds and 40% to semi-liquid vehicles.

A broader pool of capital

The main driver is distribution. 47% say changes to fund structures are being driven by access to new channels such as private wealth, while only 7% cite investor demand for liquidity as the primary reason. Liquidity is not necessarily the end in itself; it helps make private-market products workable for investors who have historically struggled with a typical ten-year lock-up.

Private wealth is a clear target. 58% of respondents expect capital raised from wealth managers and private banks to increase over the next two years, while 63% expect more from family offices. Institutions remain important too of course: 86% expect increased pension fund capital, 80% from insurers and 84% from sovereign wealth funds. 

Family office portfolios are already big investors in private assets. BlackRock’s 2025 survey found that alternatives already account for 42% of family-office holdings, with 32% planning to increase private credit allocations and 30% infrastructure. UBS found US family offices holding 54% of their portfolios in alternatives, including 27% in private equity and 18% in real estate. Extending that reach from family offices into the wider private-wealth market is a logical next step.

A tougher fundraising market adds pressure

At the same time, 62% say raising capital has become more difficult than in 2025. Increased due diligence requirements are cited by 63% as a barrier, regulatory uncertainty by 57% and LP overallocation by 48%.

Managers therefore have a strong incentive to cast the fundraising net more widely rather than fish in the same institutional pool. But private wealth is spread across different jurisdictions, regulatory regimes, tax structures and distribution networks. Reaching it means joining up distribution and structuring expertise across markets, rather than just repackaging an existing institutional fund.

Structural innovation is appearing elsewhere

Structural innovation is not confined to the fund wrapper. In our separate European infrastructure lending survey, 76% reported increased use of hybrid debt/equity structures, 72% preferred equity and 33% NAV financing. The driver here is different, with managers using more flexible capital structures to protect returns as spreads tighten, but the underlying instinct is similar.

Closed-ended funds will retain the centre of gravity, but they are no longer the only template. Product design is becoming more closely tied to the investor base, the distribution channel and the jurisdiction in which that capital sits.

⁶ Ocorian’s 2026 asset manager survey of 300 senior executives at private equity fund managers

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