Raising From Wealthy Investors: A Fee, Lock-Up and Co-Investment Playbook
Wealthy investors are no longer new to private markets, and they are getting pickier about terms. A survey of more than 600 wealthy investors across the UK, Europe, Asia, the Middle East and Africa, fielded between 29 May and 5 June 2026, found that 72% now invest in private markets, up from 50% in 2025. Some 60% plan to increase their allocations. The average allocation, though, slipped to 27% from 30%, which is a sign of more selective investors and not a pullback. This playbook turns those numbers into six decisions a GP can make before approaching family offices and high-net-worth investors.
Step 1: Plan for selective capital, not more capital
Participation rose sharply, but average allocation fell by three percentage points, so more investors are each committing a slightly smaller share of their wealth. Year-on-year comparisons in a survey may also reflect different respondents, so read the direction rather than the decimals. Size your fund and your minimum ticket for that. If your fund needs a handful of large cheques, target family offices with a track record of larger tickets. If it relies on many small tickets, plan the administration and reporting for a long investor list before you start marketing.
Step 2: Rework the fee conversation
Among investors who are not yet in private markets, 53% said they want better fee structures. Do not wait for them to ask. Prepare a clear one-page summary of your management fee, carry terms and expenses, and decide in advance where you can give ground, for example on a lower fee for larger commitments or for early commitments to a first close.
Step 3: Offer a path out of a long lock-up
Some 41% of non-investors want shorter lock-up periods. Few closed-end funds can shorten their life, but many can offer something around it: a transparent policy on transfers of interests, a process for approving a sale on the secondary market, or a clear schedule for expected distributions. Our playbook for when an LP sells your fund stake shows how to handle that process.
Step 4: Use co-investment as a relationship tool
Half of current private markets investors in the survey already use co-investment, and 42% of those who do not are considering it. Decide before the first meeting what you can offer: a share of deal flow for larger commitments, a defined fee on co-investment capital and a set response time. Our analysis of why co-investors are a warm route to fund LPs shows how this feeds introductions as well.
Step 5: Educate before you pitch
Nearly half of investors who are not in private markets cited a lack of knowledge as a barrier. For these investors, a first meeting that explains how capital calls, the J-curve and distributions work will do more than a deck on your edge. Put a short guide to those mechanics in your data room. Our look at identifying family office liquidity events can help you find the moment when a family is most open to a new allocation.
Step 6: Match your strategy to the demand shifts
Among current investors, infrastructure allocations rose from 22% to 27%, and 42% increased their allocation to secondaries. Among non-investors considering a start, 37% were considering infrastructure, up from 14% in 2025. Technology led the sectors investors planned to grow in, at 63%, followed by healthcare at 54%, energy at 44% and financial services at 40%. If your strategy sits in one of those areas, say so early and be specific about the sub-sector.
Putting the six steps on a timeline
In the first two weeks, finalise the fee summary and the transfer policy, since every later conversation depends on them. In weeks three and four, build the educational pack and decide your co-investment terms. Then start outreach in waves, beginning with investors who already know your team, and keep a record of which terms each investor asked about. If three or more investors raise the same objection, change the terms rather than the pitch. The survey reached investors in several regions, so keep a separate checklist for each jurisdiction in which you plan to market, and ask your counsel what is permitted before any approach.
Common mistakes
The first mistake is treating wealthy investors as a uniform group. The survey shows large gaps by age: 84% of millennials plan to raise allocations, against 59% of Generation X and 36% of baby boomers, so a message that works with one generation may not land with another. The second is leading with returns when the barrier is knowledge or liquidity. The third is promising liquidity the fund cannot deliver. A one-page summary that states the fund life, the expected distribution pattern and the transfer policy in plain terms avoids all three, and it is easier to forward to a family adviser than a long deck.
What to watch next
Watch whether average allocations continue to fall as participation rises, and whether demand for shorter lock-ups pushes more managers toward semi-liquid structures. FundLinx members can see which family offices are adding private markets this quarter.
FundLinx Intelligence | FundLinx.ai