Private market investors are bracing for a growing population of "zombie" funds even as enthusiasm for private credit cools, and artificial intelligence emerges as a new battleground among fund managers.
A survey of 108 institutional investors overseeing more than $2 trillion in assets suggests private markets may be entering a new phase—one defined less by rapid fundraising and more by questions around liquidity, performance and manager differentiation.
Coller Capital's Summer 2026 Global Private Capital Barometer highlights a growing concern surrounding zombie funds.
Zombie funds are typically defined as vehicles whose managers prolong fund lives while struggling to exit investments, often continuing to collect management fees despite limited prospects for meaningful value creation.
More than half of limited partners (54%) expect the number of zombie funds in their portfolios to increase over the next two years.
