Private markets boom faces hardening investor scrutiny

Private market fund managers are entering 2026 with record fundraising confidence, and much of that expansion is being engineered out of Luxembourg, according to Carne Group. The Grand Duchy has become the operational nerve centre for European private capital, hosting the majority of Europe’s ELTIFs and an expanding ecosystem of third-party management companies. Yet as assets surge and semi-liquid structures multiply, Carne’s survey finds that institutional investors are sending a firm signal: growth will only be tolerated if governance, valuation discipline and liquidity management meet a significantly higher bar.