Institutional investors across the globe are preparing for a significant revival in initial public offerings (IPOs) throughout 2026, as a growing number of general partners set their sights on entering the stock market.
Survey Reveals Strong IPO Intentions
According to recent research conducted by private equity firm Coller Capital, almost eighty per cent of limited partners (LPs) – those investors who provide capital to partnerships without managing operations – reported that their general partners (GPs) are actively preparing portfolio companies for public market listings.
Furthermore, nearly one third of respondents confirmed that multiple GPs have already shared specific IPO plans for the coming year, indicating a clear shift away from the subdued listing environment that has characterised recent periods.
London Market Shows Signs of Recovery
This anticipated revival follows a challenging period for London's public markets. In 2025, the FTSE welcomed just twenty-two new listings, which collectively raised £1.2 billion. While this represented a marked improvement from the previous year's sixteen listings, analysts believe 2026 could see further acceleration.
Market observers point to several factors driving this optimism, including major reforms to the London Stock Exchange's listing criteria that have begun attracting companies to the capital. Recent successful IPOs, such as tinned tuna giant Princes and The Beauty Tech Group, have demonstrated renewed investor appetite for new market entrants.
Continuation Vehicles Remain Prominent
Despite the anticipated increase in IPO activity, institutional investors continue to encounter continuation vehicles as a significant feature of the private equity landscape. Nearly two thirds of LPs have either already experienced or expect to see assets rolled into these structures.
Continuation vehicles represent transactions where private equity groups sell assets to newer funds managed by the same firm, allowing them to return cash to investors in older funds. While these structures have raised concerns about potential conflicts of interest, they appear to be gaining acceptance as long-term market features.
Jeremy Coller, chief investment officer and managing partner at Coller Capital, commented: "Private markets continue to evolve and rebalance across different fronts. LPs are beginning to see a path back to traditional exits through IPOs, while at the same time becoming more comfortable with continuation vehicles as a long term feature of the market."
Growing Acceptance of Secondary Structures
The research reveals interesting patterns in how investors approach continuation vehicles. Over eighty per cent of limited partners opted to take liquidity from these structures, while nineteen per cent chose to roll their investments forward, suggesting growing comfort with these mechanisms beyond mere temporary holding strategies.
Simultaneously, GP-led secondary transactions are establishing themselves as strategic fixtures within the market. This niche tool allows fund managers to create new vehicles to purchase assets from their own funds, providing some investors with exit opportunities.
Nearly ninety per cent of LPs expect these transactions to expand their market presence, with twenty per cent anticipating they will become mainstream features. Investors cite several advantages, including opportunities to purchase assets at discounts, meet liquidity needs, and gain access to seasoned investment opportunities.
Asian Markets Attract Investor Attention
Limited partners are also looking to broaden their geographical reach, with Asian markets re-emerging as priority regions for global investment strategies. Within this diverse region, India stands out as particularly attractive to institutional investors.
Forty-four per cent of LPs expect to increase their exposure to India through Asia-focused funds, reflecting confidence in the country's economic prospects and market development.
Japan also features prominently in investor plans, with thirty-four per cent of respondents expecting to increase their exposure to this market. This growing interest signals increasing confidence in the maturity and investment offerings available within the Japanese market, suggesting a broadening of geographical investment strategies among institutional investors.
The combination of anticipated IPO revival, evolving secondary market structures, and geographical diversification indicates a dynamic period ahead for institutional investors navigating both public and private market opportunities.
