The State of Fundraising in the Asset Management Industry

In the summer of 2025, Citrin Cooperman polled 300 senior leaders of asset management firms across the United States to explore their most pressing challenges and opportunities. Our survey respondents span sectors including private equity, venture capital, private credit funds, and hedge funds. It is no surprise that the state of fundraising is top of mind for leadership in today’s market.

Current Challenges and Opportunities

The asset management fundraising environment continues to face challenges and opportunities both old and new. These include increased competition for capital, evolving investor preferences, and new demands. As fund managers look for new sources of capital, our survey respondents identified a combination of corporate and public pension funds as top targets, followed by high-net-worth individuals, insurers, and companies, all of which shape capital sourcing strategy.

This shift brings increased reporting requirements and other concessions, like lower fees. These sources also help asset managers allocate marketing and relationship management resources effectively and ensure they're building the right products for the right investors.

Our survey highlights the shifting ties surrounding the economy, politics, tariffs, interest rates, and other factors that have taken a toll on deal making pace and exit plans. 4 in 10 survey respondents have paused future deal making activity, or all deal making activity. However, it is expected that the industry will likely see continued activity and consolidation, enabling firms to diversify into new asset classes, acquire new capabilities, and broaden their distribution channels.

Fundraising Outlook

With longer fundraising timelines which have now increased to 7 to 12-month time range, limited partners (LPs) are conducting more rigorous due diligence on teams, strategy, and track record — if you're a first-time fund in particular, your team's individual experience and skin are in the game. To be successful, your personal investment in the fund is critical.

In the search for capital, managers have long relied on third parties to bring expertise and access to sourcing capital in a highly competitive environment. For these and other reasons, managers use third parties to help source capital like consultants, placement agents, and prime brokers in capital raising activities.

LPs are now demanding more data transparency. It's vital for funds to provide transparent reporting, manage expectations, and build stronger relationships with LPs. Experienced fund managers are raising larger funds; mega deals are increasing, and sectors like technology and innovation are attracting significant interest.

Despite many challenges, the outlook for 2026 is optimistic — driven by easing monetary policy, relaxed regulations, and increased capital available for deployment.