PE Co-investments and Direct Investments Expected to Surpass Traditional Funds as Top Capital Source Within Five Years, Survey Shows Record 2026 Volumes Over $215 Billion
A survey by investment bank Houlihan Lokey, polling 56 active buyers, found 78% expect combined volumes for co-investments and direct investments to set a record in 2026, surpassing last year's estimated $215 billion (comprising $161 billion in directs and $54 billion in co-investment). Investors favor these strategies due to increased visibility, enabling direct asset underwriting. In Europe, co-investment funds have raised €6.3 billion (around $7.3 billion) this year, nearly matching last year's €7.2 billion, though the number of funds closed fell to 14. Notable closures include Pantheon Global Co-investment Opportunities Fund VI, which raised $3.2 billion in July, and Partners Capital Investment Group's Merlin IV, which closed in February with over $1 billion.
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