Trends
The consultant finds the primary theme for 2026 is surprises – growth surprises, inflation surprises, political surprises – despite a generally positive outlook backed by continued economic growth.
Many endowments, foundations and their allocators point to relatively small or medium-size private equity buyout and early-stage venture capital for returns that outpace the public markets, while private real estate, infrastructure, hedge funds and private debt, especially asset-based lending look like strong portfolio diversifiers in this year’s mercurial environment.
Nonprofit investors and allocators are tempering expectations for their portfolios in 2026 as they prepare for more moderate returns resulting from increased volatility and heightened valuations along with persistent macroeconomic and geopolitical uncertainties.
Outsourced cio providers can best meet endowments and foundations’ growing demand for exposure to the best private market asset managers through dedicated research teams and tailored service models.
Wealth and asset management firms are advancing in AI, which a new global study finds will revolutionize the sectors and transform how they operate, serve clients and generate value.
The largest university and college endowments experienced double-digit gains in two consecutive years drive by a return to long-term trends like large private equity allocations.
Markets are due for a correction in 2026 after three consecutive years of double-digit returns on most indexes, with a new study finding many institutions are favoring active strategies.
Secondary fund investments are increasingly driving interest among institutional investors as the industry finds it’s a good place to gain comfort with private markets and efficiently deploy capital amid deal activity and fundraising surges.
One discretionary advisor sees an imperative need for in-person interaction at foundations and endowments to successfully advance mission-oriented objectives, particularly amid changing board demographics.
Some endowments and foundations are looking to emerging market debt, multi-asset credit and long-term bonds as a way to diversify their portfolios while also capitalizing on the macrotrends leading to a weaker greenback.