Waning Fund Sizes, AI Adoption Reshape Private Capital Fundraising
Emerging fund managers with differentiated, AI-enabled technology capabilities are increasingly well-positioned to stand out in a private capital fundraising environment that is normalizing after years of volatility, according to a new report from SS&C Technologies.
The SS&C Intralinks 2026 Global Private Capital Fundraising Report, produced in association with PitchBook, finds that 427 private market funds raised $170.7 billion through March 12, 2026, with year-to-date median and average times to close a fund reaching decade lows of 11.5 months and 14.6 months, respectively. The median and average times to raise a subsequent fund have declined to pre-pandemic levels, while average fund sizes are getting smaller, with step-ups declining to 1.9x from 3.6x — the first such decline since 2020.
“Although overall fundraising levels remain low, we are seeing a normalization of fundraising patterns,” said Ken Bisconti, Head of SS&C Intralinks. “Fund managers are raising less capital across fewer funds and closing funds faster than at any point in the last decade.”
Bisconti identified AI adoption as an increasingly important factor in how limited partners evaluate managers. “The managers embracing digital sophistication and an AI-enabled tech stack will stand out in this market. LPs’ expectations of GP data capabilities now extend beyond traditional security and governance to include AI adoption,” he said.
Venture capital and private equity funds continue to dominate global private capital fundraising activity, capturing nearly 80% of funds closed year to date. North American fund managers led all regions, attracting 72.4% of global private capital raised in the first quarter of 2026 and 66.3% of global fund volumes — a material increase from the prior year. Asia-based fund managers, by contrast, experienced significant declines in fundraising activity.
The report also highlights growing LP scrutiny of managers’ technology infrastructure, including their use of AI to support fundraising, due diligence, investor communications and operational processes — a trend that is reshaping how fund managers present their capabilities to prospective investors.