Limited partners are taking a more hands-on approach to alternative investments, according to Dynamo Software’s fourth annual survey of global asset allocators. Among more than 90 LPs surveyed, 54% plan to increase alternatives allocations in 2025, but the way they deploy capital is shifting. Reliance on traditional fund managers has dropped to 70% from 86% in 2023, while co-investments climbed to 56%, reflecting growing interest in cost savings and greater control over investment decisions. 

“Asset allocators seem to be signaling that they want a greater say in how their capital is deployed,” said Hank Boughner, CEO of Dynamo Software, noting that GPs will need to emphasize transparency and trust to remain central to value creation. 

The geographic tilt of portfolios also changed sharply: North America’s share fell to 48% from 78%, while Europe rose to 27% and Asia to 23%. Although partly explained by broader survey participation from European and APAC allocators, the trend highlights a potential pullback toward regional strategies as global uncertainty tops LP concerns. 

Technology spending continues to rise, with 59% of allocators planning budget increases, the highest level in four years. LPs are prioritizing automation, portfolio management, and due diligence tools, even as skepticism grows around emerging tech themes: more than half called the metaverse “overhyped,” 45% said the same about crypto and blockchain, and 35% questioned AI hype.