Private Equity Firms Face Operational Strain Amid Market Shifts

The Vistra Fund Solutions Private Equity Report 2026, which surveyed 455 professionals globally, highlights a disconnect between industry ambition and execution. While firms are diversifying into continuation vehicles, secondaries, and private wealth channels, 45% of respondents identify valuation and reporting complexity as significant hurdles. These pressures are magnified by manual data handling, which currently accounts for 33% of operational workload.

The Automation Gap

Investor expectations for granular, real-time reporting are intensifying, with 93% of firms acknowledging that operational excellence is vital for maintaining capital confidence. Despite this, only 27% of firms possess the necessary infrastructure to support retail and semi-liquid products. To bridge this divide, budgets are shifting; technology-focused spending is expected to rise from 18% to 32% over the next three years. Although every respondent is exploring AI, 99% admit to a substantial gap between their artificial intelligence goals and current operational reality. As internal resources are stretched, firms are increasingly looking to outsource, with technology integration, investor services, and data management emerging as the primary targets for external support.