Private Wealth Investors Defy Exit Drought with Increased Private Equity Allocations for 2027

Private wealth investors are doubling down on private markets despite a prolonged exit drought and geopolitical volatility. According to Moonfare’s latest global survey, nearly two-thirds of individual investors intend to increase their allocations by 2027, signaling a growing preference for alternative assets over public markets as they hunt for superior long-term returns.

What was announced

The Moonfare Investor Survey 2026 polled several hundred private markets investors across Europe, North America, Asia, and the Middle East. The data shows a marked increase in confidence; 58% of respondents expect private markets to outperform public ones over the coming years, an increase from 54% in the previous year. This sentiment persists even as 66% of investors identify the current lack of exit opportunities as a primary concern.

Investment activity remains robust, with 82% of those surveyed having made new private market allocations in the last 12 months. Looking ahead, 63% plan to make new commitments—an 8 percentage point rise from the prior year—while only 9% intend to halt further investment. Liquidity pressures appear manageable for this cohort, as 62% stated they would refuse to sell portions of their portfolios at a discount to gain immediate cash.

In terms of strategy, 68% of investors believe mid-market buyouts will offer the best returns over the next one to three years. There is also a significant shift toward earlier-stage equity; preference for growth and venture capital has jumped from 26% to 46% since last year. Artificial Intelligence is the dominant sector of interest, with 61% of investors expressing high conviction. Furthermore, 54% of respondents aim to allocate between 11% and 30% of their portfolios specifically to AI-related investments, focusing primarily on AI applications rather than infrastructure or large language models.

"In a year marked by gating incidents, high redemptions and market uncertainty, private wealth investors aren’t just following the headlines. They are taking a longer view and conviction is growing.More plan to commit capital next year, and most would rather wait for the right exit than sell at a discount."

Steffen Pauls, Founder and Co-CEO of Moonfare

The companies involved

Moonfare operates as a global private markets platform and manager, designed to provide individual investors and their advisors access to top-tier private equity and venture capital funds. Headquartered in Berlin, the firm has established itself as a significant player in the "democratisation" of private equity, a sector historically reserved for large institutional players like pension funds and endowments.

The company’s leadership includes Steffen Pauls, who serves as Founder, CEO, and Chairman. Under his direction, Moonfare has expanded its reach across multiple continents, including Europe, Asia, and North America. The platform leverages technology to streamline the onboarding and investment process, allowing private wealth investors to build diversified portfolios of alternative assets with lower entry minimums than traditional private equity routes. As an independent manager, Moonfare focuses on fund selection and due diligence, positioning itself as a gatekeeper for high-net-worth individuals seeking exposure to the private markets.

What FF News has reported before

FF News has closely tracked Moonfare’s evolution and its research into the private equity landscape. In September 2026, we covered Moonfare Research: Private Equity Returns Gap Hits 19.2% as Manager Selection Becomes Critical, which highlighted the widening performance disparity between top-tier and bottom-tier fund managers. This followed the company’s strategic move into specialized sectors, as seen when Moonfare Launches New AI-Focused Technology Strategy in April 2026. Additionally, the firm has been bolstering its physical presence and expertise, notably when Moonfare Expands Investment Team With London Hire in mid-2025. These reports underscore a consistent trend of the firm aligning its product offerings with the high investor interest in AI and mid-market strategies identified in the latest survey.

What this means

The survey results indicate a maturing private wealth segment that is no longer easily spooked by cyclical downturns or liquidity constraints. By choosing to hold assets rather than accept "fire sale" valuations, individual investors are behaving more like sophisticated institutional limited partners. This puts significant pressure on fund managers to prove they can generate value through operational improvements rather than relying on cheap leverage or quick exits. The surge in AI conviction suggests a massive capital rotation is underway, which may leave traditional software and legacy tech firms struggling to maintain their share of private wealth portfolios as investors pivot toward disruptive applications.