A shifting LP landscape demands an evolved GP response
A challenging macroeconomic backdrop and a more sophisticated approach to private-markets portfolio construction are transforming how LPs structure their investments. As outlined in Part 1, LPs are now operating with greater precision — seeking diversification, liquidity, and data-driven performance visibility.
GPs must now match this sophistication with operational precision, technology-driven efficiency, and a sharper investor narrative.
LPs are more demanding when it comes to investor reporting and GP operational capability, and more precise about the geographic and risk-reward exposure of the funds and investment strategies they back.
To remain relevant, GPs can no longer rely solely on track record and relationships. They must demonstrate infrastructure maturity, institutional-grade processes, and the ability to anticipate LP needs before they are voiced.
As the underlying reasons driving LP allocation decisions continue to evolve, GPs must show they can adapt at the same pace — not by simply adding products, but by redesigning how they create, deliver, and communicate value.
The GP response: turning challenges into competitive advantage
At Alter Domus we have identified four key areas for GPs to address in order to remain in tune with evolving LP expectations:
Level up technology
Implementing integrated, best-in-class technology infrastructure has become the bedrock for any GP aiming to meet the operational and reporting sophistication now required by LPs.
Technology-enabled managers can transform operational agility — automating core functions, enhancing data transparency, and freeing teams to focus on performance rather than process.
Beyond efficiency, technology has become a signal of credibility. LPs now associate digital maturity with governance strength and risk control — both essential to institutional trust.
Develop global reach
The LP base is becoming increasingly diverse and globally distributed. Investors are seeking differentiated risk-return exposures across geographies — from North America to Europe and Asia — creating new demands on GPs’ operational infrastructure.
For GPs, global operational reach is no longer optional — it is a prerequisite for credibility. Managers that can provide consistent reporting, compliance, and investor servicing standards across jurisdictions will differentiate themselves in an increasingly competitive fundraising market.
Building up global investor servicing in-house is operationally challenging and capital intensive. GPs who can provide a global network for fund servicing capability will be at a distinct advantage in a competitive fundraising market.
Facilitate liquidity
A manager’s ability to proactively manage liquidity has become a defining factor in securing investor confidence and capital commitments.
As exit volumes slow, distributions to LPs have fallen, leaving investors cash-constrained and selective.
With distributed-to-paid-in (DPI) ratios now central to allocation strategies, GPs that can dilute their demands for liquidity from investors, and expedite distributions through alternative channels, will stand out from the crowd. The ability to maximize the use of fund finance and GP-led secondaries markets will be key tools for achieving these strategic objectives.
Fund finance can be used in myriad ways to optimize liquidity for managers and LPs. NAV lines can be used to speed up distributions but also serve a more prosaic function of simply reducing the requirement to make capital calls or seek fund extensions to secure additional support for portfolio companies. Fund finance facilities can also be used to finance GP commitments at time when LPs are expecting larger commitments and manager cash flows have been constrained because of prolonged hold periods.
Harness asset-specific know-how
Investors are taking a more targeted approach to constructing their private markets portfolios, which increasingly contain a mix of private markets strategies.
Some GPs have already successfully branched out into adjacent strategies like private credit and secondaries, and there remains a window of opportunity for GPs to expand their franchises by launching new strategies that align with LPs’ growing appetite for diversification.
However, adding a new strategy introduces not only additional operational demands but also the need for asset-specific expertise. A private credit fund, for example, will require systems that can calculate and collect interest payments and track covenant tests and loan amortization. Infrastructure strategies require the capacity to forecast and manage long-term capital calls and complex pricing arrangements.
Ultimately, the GPs best positioned for success will be those able to scale their platforms efficiently while maintaining the precision, transparency, and discipline that LPs now expect across every asset class.
How Alter Domus enables the next generation of GPs
The evolution of LP expectations — from technology and transparency to liquidity and diversification — is forcing GPs to elevate every part of their operating model. Alter Domus partners with managers to make that transition achievable.
Through our global platform of more than 6,000 professionals across 23 jurisdictions and the administration of 36,000 client structures, we provide the infrastructure, data precision, and multi-asset servicing expertise that help managers operate at institutional scale.
Whether upgrading technology stacks (such as Allvue, eFront, Private Capital Suite or Yardi), streamlining reporting workflows, or managing NAV and fund-finance structures, Alter Domus helps GPs build operational resilience and investor trust.
Our regulatory fluency, local presence, and deep understanding of LP priorities allow us to support clients as they expand into new geographies, launch diversified strategies, and strengthen liquidity management — all while reducing the cost and complexity of doing so in-house.
By embedding scalable processes and data discipline into our clients’ operations, Alter Domus enables GPs to focus on what matters most: delivering performance, building durable LP relationships, and positioning their franchises for long-term success.
What this means for GPs
The changing drivers of LP allocation strategies present an opportunity for GPs. Managers who understand shifting LP priorities and respond proactively can gain an edge over peers who are slower to adjust.
However, success will depend on more than investment performance — it will require a robust operational backbone that can sustain the growing complexity of global portfolios and multi-asset strategies.
Alter Domus’ global footprint, technical expertise, and asset-specific servicing capability position us to help GPs meet this higher standard — turning operational excellence into a genuine competitive advantage.
Conclusion
Shifting LP allocation priorities are raising the bar for how GPs operate, not just how they invest. As portfolios become more complex and capital more selective, operational capability has become central to credibility, scalability, and fundraising success. GPs that align technology, liquidity management, global reach, and asset-specific expertise will be best positioned to meet evolving LP expectations and compete in the next phase of private markets.
