If it feels like institutional capital is harder to lock down this year, you’re not wrong. Allocators are being more selective, and more strategic.
But here’s the good news: they are allocating. And if you’re paying attention to where the dollars are landing, there’s a clear pattern emerging.
In August alone we saw two groups pulling ahead: large-cap platforms and sector specialists.
For fundraising and investment sales professionals, this offers a useful takeaway for their day-to-day work.
Let’s break down what’s working, and how you can position your strategy to win.
Big Funds Are Getting Bigger
Take TPG Growth VI, which closed above target at $4.8 billion in August. Or KKR, returning to market with its fifth Asia growth fund. In real estate, Challenger Life made a $1.4 billion commitment to core retail assets, while CPP Investments deployed $1.33 billion into data center infrastructure.
Why does this matter?
Because it confirms what many of us in fundraising already feel: institutions are leaning into scale. When allocators are cautious, they default to platforms that can check multiple boxes… track record, deployment capacity, risk controls, global reach.
If you’re at a large platform, lead with that scale. Don’t assume allocators already know how big and institutional-ready you are.
If you’re not large, that’s okay. But you’ll need to compete in a different lane. Read on.
Specialists Are Winning on Focus
On the other end of the barbell, sector specialists are outperforming expectations. In August:
- Frazier Life Sciences closed on $1.3B
- Dextra Partners hit their $825M hard cap for co-invests
- Painswick Capital doubled its target with a debut continuation fund
- In venture, targeted themes like defense, AI, and climate drew oversubscribed raises
Rather than broad ‘tech’ or ‘growth’ exposure, allocators increasingly favor managers with well-defined themes that align with lasting macro or policy-driven trends.
If you’re a sector-focused GP or fundraising for a niche strategy, this is your moment to lean in.
Don’t hide your focus, highlight it. Whether it’s clean energy, digital infrastructure, healthcare royalties, or AI-led SaaS, depth wins deals.
It’s Not Just About Strategy. It’s About Signals
Here’s a key insight from the data: institutional capital is gravitating toward managers who signal repeatability, pipeline visibility, and deployment discipline. Whether it’s through a flagship growth fund or a specialist co-investment vehicle, LPs are rewarding:
- Clear sourcing advantages
- Proven exits or realizations
- Structures that support governance and transparency
In other words, what you say in the deck matters. But what you show in the data matters more.
If your team is raising right now, ask yourself:
Are you telling the story institutional LPs want to hear… or just the story you want to tell?
What You Can Do RIght Now
If you’re building pipeline or chasing a close in Q4, here are 3 things that will set you apart in this barbell market:
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Know your lane – You don’t have to be mega. But you do have to be clear. If you're a specialist, lead with depth. If you're large, lead with platform breadth.
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Know your LPs – Not all allocators are rewarding the same signals. Use tools like Dakota Marketplace to see who’s allocating to what strategies right now.
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Know your timing – The data shows active allocation, but it's selective. Early engagement, data-backed outreach, and precise targeting can move the needle.
At Dakota, we don’t just report trends, we give you the tools to act on them. Whether you’re raising for growth equity, real estate, venture, or private credit, Dakota Marketplace helps you see who’s active, what they’re allocating to, and how to get in front of them before the close.
If you're fundraising in a market that rewards precision and scale, book a demo of Dakota Marketplace!
