Private Equity: The Challenges of 2026 Viewed Through the Lens of Digitalization

After two fiscal years characterized by liquidity constraints, regulatory demands, and operational pressure, asset management companies are entering a phase where digitalization is no longer a competitive advantage—it's a prerequisite for continuing to raise funds, distribute, and succeed.

Here are the key dynamics to anticipate.

1. Restoring Liquidity: The Utmost Priority, Dependent on Data

Deal exits are slowing down, and so are distributions. In 2026, GPs must make their management more transparent and predictable to restore investor confidence.
Digitalization becomes a direct lever: instant position updates, consolidated visibility on overall exposure, scenarios, and forecasts based on verified data.
Several studies show that the liquidity problem has remained central to the sector for a year now > see Deloitte study "Unlocking a potential US$3.8 trillion opportunity for private equity firms".

2. Intermediation Establishes Itself as a Strategic Link

The role of distributors is strengthening, particularly among private investors. By 2026, management companies must:

• provide a seamless experience to their networks

• secure subscription pathways

• minimize KYC/compliance frictions

• ensure complete traceability of exchanges

The digitalization of the intermediation/distribution chain becomes a differentiation lever.

For further insights, Ariane Doutey’s interview highlights how InvestHub is supporting and ensuring the digital transformation of Entrepreneur Invest

3. KYC/AML Becomes a Field of Risk—And Differentiation

Authorities are raising their expectations, volumes are increasing, and commercial networks are expanding. By 2026, funds will need to:

• automate controls

• centralize evidences

• track revisions and validations

• natively integrate with screening solutions

Refer to the PWC article which reminds us that digitalization goes beyond front-office processes and deeply transforms compliance practices.

4. Operational Costs Must Decline Without Sacrificing Ambition

The equation for 2026: more funds, more investors, more compliance... with teams that do not double in size.
Digitalization becomes an efficiency multiplier: no-code workflows, automated capital calls, centralized document management, unified portals. Management companies that fail to automate will see their margins shrink mechanically.

5. Technology Becomes Unsustainable

Between CRM, proprietary tools, legacy platforms, Excel reports, various extranets... the stacking has reached its limits.
2026 will be the year of architecture rationalization: native integrations, standardized APIs, unified digital identity, consistent data across Sales, IR, Middle/Back Office.

Technological rationalization has already been identified as a key challenge, see PWC article referenced in point #3.

6. Investor Experience Clearly Upgrades

Private investors demand the same level of ergonomics as online banking or retail fintech. Institutional investors expect immediate and verifiable data quality.
By 2026, this means: modern, customizable portals, real-time access to documents, capital calls, distributions, reporting.

Funds that undertake this modernization clearly enhance their attractiveness and create more favorable conditions for future fundraising.

7. Internal Teams Want Simplicity, Robustness, Reliability

The talent war intensifies. Teams want less patchwork solutions, fewer shared files, less reliance on ad hoc developments.

Digitalization plays a cultural role: fewer repetitive tasks, clear and traceable processes, more time for analysis and investor relations. A structured tool becomes a retention factor.

2026, The Year Digitalization Becomes the Foundation of Private Equity

The sector is moving towards a model where:

• intermediation is managed A-Z

• investor experience is a fundraising lever

• data serves liquidity

• operational efficiency is non-negotiable

• platforms become standards

• compliance is managed continuously

Digital transformation is no longer a project.
It becomes the operational base that allows management companies to remain effective in times of pressure and growth.

In this environment, InvestHub aligns precisely with these expectations: a unique, modular, and interoperable platform that structures intermediation, eases investor relations, and strengthens operational control.

It’s a digital foundation designed to sustainably support the evolution of private equity.