15% of LPs Now Plan to Cut Their Manager Rosters, Up From 4%, While 49% Prefer Managers Under $500 Million, a Survey of 400 Finds

A 2027 survey of limited partners published on 5 November shows investors tightening their manager lists. Of the LPs surveyed, 15% now plan to reduce the number of managers they back, up from 4% a year earlier, and 65% plan to add new manager relationships, down from 75%. The survey covered 400 private markets professionals, including 370 LPs and allocators, with responses collected in the third quarter of 2026.

The numbers

The shift in the roster question is large in relative terms. The share planning to cut rose from 4% to 15%, a gap of 11 percentage points. Applied to the 370 LPs, that is about 55 LPs planning to cut now against about 15 a year earlier, our arithmetic from the disclosed percentages and sample size. The share planning to add managers fell from 75% to 65%, a gap of 10 points. The survey does not disclose the capital those LPs control, so we cannot give a share of capital, only a share of count.

Preference for smaller managers moved even further. Of the LPs surveyed, 49% now prefer managers with under $500 million in assets under management, up from 28% a year earlier. That is a rise of 21 points, and about 181 of the 370 LPs on the same arithmetic.

Technology and AI

Technology expectations are rising alongside. Of the LPs surveyed, 43% are scaling or embedding AI across their functions, and nearly one-third say a manager without a credible AI and technology strategy would not be investable. The release also cited 41% naming higher expectations on technology and data over the past two years. The survey's spokesperson said performance alone is no longer enough.

What it means for GPs

This is our reading, not a finding of the survey. A smaller roster means each manager that is kept carries more weight, so the first meeting is about whether you can be one of fewer relationships. That helps emerging and mid-sized managers in one respect, because the preference for managers under $500 million grew sharply, and hurts in another, because fewer new slots may be available. We have written about how LPs decide on new managers, about fewer LPs planning to deploy more than last year, and about how smaller managers should plan a first close. Read together, they point the same way. An emerging manager should lead with a verifiable track record, show reporting and data access that works without a call, and follow our guide on how emerging managers find LPs.

What to watch next

Watch whether the 15% roster-cut figure holds in the next survey, and whether the preference for managers under $500 million persists as larger funds close. FundLinx members can see which LPs are adding managers now.

FundLinx Intelligence | FundLinx.ai