Institutional investors brace for IPO revival as general partners eye listings
Global institutional investors are anticipating an uptick in IPO activity in 2026, as more general partners prepare to enter the stock market.
Almost eight in ten limited partners (LPs), investors in a partnership who contribute capital but do not manage operations, reported that their general partners (GPs), individuals who manage investments, were preparing portfolio companies for public markets.
Meanwhile, nearly a third said multiple GPs had shared their IPO plans for 2026, according to private equity firm Coller Capital.
In contrast, just nine per cent of LPs confirmed there had been no IPO discussions to date, reflecting the shift away from the subdued IPO environment in recent years.
In 2025 the FTSE saw just 22 listings, raising a total £1.2bn, however this was a marked improvement to the prior year where only 16 companies floated onto London’s index.
Analysts are expecting a further revival to the market in 2026, following IPOs including tinned tuna giant Princes and The Beauty Tech Group, noting major reforms to the exchange, including reducing listing eligibility criteria, have begun attracting companies to the capital.
Backing continuation vehicles
But despite the increase in potential IPO activity, institutional investors are continuing to encounter continuation vehicles, with nearly two thirds having already seen or expecting to see assets rolled into the vehicles.
These transactions sell assets already owned by a private equity group to continuation vehicles, which are newer funds also managed by the firm, allowing firms to return cash to investors in older funds, but have prompted concerns around potential conflicts of interest.
Jeremy Coller, chief investment officer and managing partner of Coller Capital, said: “Private markets continue to evolve and rebalance across different fronts.
LPs are beginning to see a path back to traditional exits through IPOs, while at the same time becoming more comfortable with continuation vehicles as a long term feature of the market.”
Over 80 per cent of limited partners opted to take liquidity from their continuation vehicles, but 19 per cent chose to roll their investments, indicating a growing comfort for these structures as a long term investment beside just being a tactic to hold investments until finding a suitable buyer.
At the same time, GP led secondaries are becoming a strategic fixture in the market.
The niche tool allows fund managers to create a new vehicle to buy assets from their own fund, allowing some investors to cash out.
Nearly 90 per cent of LPs expect the tool to expand its market presence, with 20 per cent expecting these transactions to become a mainstream feature in the market.
They credited their thoughts on the future of the transactions on the opportunity to buy at discount, liquidity needs and access to seasoned assets.
Tapping into Asian markets
Limited partners are also looking to broaden their reach into Asian markets, with it “re-emerging as a priority region for global LPs”.
Among the region, India was cited as the stand out market, with 44 per cent of LPs expecting to increase exposure to India through Asia focused funds.
Japan was deemed an important feature of investors’ plans going forward, with 34 per cent expecting to increase their exposure in the region also, signalling the growing confidence in the maturity and offerings of the Japanese market.