IPO window cracks open as more general partners prepping portfolio companies: Coller Capital

[SINGAPORE] More institutional investors globally are reporting that their general partners (GP) are prepping their portfolio companies for initial public offerings, according to a Coller Capital report.

About eight in 10, or 77 per cent, of institutional investors say that their GPs are prepping portfolio companies for public markets while 32 per cent said multiple GPs have shared IPO plans for 2026.

Only 9 per cent of limited partners (LP) have said that there have been no IPO discussions.

Asia-Pacific (Apac) LPs reported the most pronounced change, with 87 per cent of institutional investors in the region reporting that their GPs are gearing up for portfolio company IPOs in 2026. This was followed by 82 per cent of LPs in Europe and 71 per cent of LPs in North America.

Apac is re-emerging as a priority region for LPs, with Asia-focused funds dominating as the preferred vehicle – 71 per cent of institutional investors utilise them to access South-east Asia. This was followed by China at 64 per cent and Australia at 63 per cent.

In the next three years, 44 per cent of LPs are expecting to increase India exposure via Asia-focused funds. A further 28 per cent are planning increases via country-specific vehicles.

Japan is also another key market LPs are looking to increase exposure to, with 34 per cent of them doing it via Asia-focused funds and 32 per cent of LPs doing it via country-specific funds.

“Strong IPO exit momentum in Asia-Pacific, coupled with the growing appetite for co-investments among Asia-Pacific investors, shows the region’s evolution into a more dynamic and diversified market,” said Peter Kim, head of Asia and RMB of Coller Capital

Private credit remains popular with institutional investors, with 42 per cent of LPs expecting to increase their target allocation to that asset class. However, over two-thirds or 62 per cent of global LPs expect dispersion of returns among private credit managers to widen over the next one to two years.

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In Apac, 73 per cent of LPs here expect wider return distribution in the period ahead.

Continuation vehicles are evolving, with LPs seeing “second-generation” continuation vehicles. Nearly two-thirds or 62 per cent of institutional investors say they have already seen or expect to see assets rolled into subsequent continuation vehicles.

This evolution is most noticeable among Apac LPs, with 80 per cent having seen, or expect to see these “second-generation” continuation vehicles. This compares to 67 per cent in Europe and 53 per cent in North America.

There is support for this evolution, as 75 per cent of LPs believe GPs can manage continuation vehicles. Apac LPs expressed the strongest confidence with 94 per cent believing in their GPs’ ability to manage continuation vehicles.

“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,” said Jeremy Coller, chief investment officer, Coller Capital.