Private market asset managers are responding to pressure to focus on returns on cash to their investors instead of unrealised mark-to-market gains.

This is according to MSCI’s 2026 General Partner Survey, which found that two-thirds (67%) of those surveyed say consistent distributions to paid-in capital (DPI) is their top strategic priority.

It is increasingly becoming a focal point for Limited Partners (LPs), according to MSCI’s report, as 38% of General Partners (GPs) cite it as the measure that draws the most investor attention after internal rate of return (IRR).

While unrealised paper gains have been accepted industry-wide by investors, particularly in illiquid private equity assets, LPs are calling for something “more tangible”, MSCI said.

Luke Flemmer, head of private assets, MSCI, said: “The centre of gravity has shifted from deployment discipline to demonstrated outcomes. Distributions to paid-in capital, realised value and the comparability of returns across managers and vintages are now central to how LPs evaluate their GP relationships.”

The survey also found that higher interest rates and rising LP selectivity are making it harder for fundraising and exits, and to make it worse, capital is flowing to a narrower set of strategies: namely private equity and growth equity, infrastructure and secondaries.

To achieve capital return and liquidity, Asia is taking a different approach to other regions, according to the survey.

Asian GPs are pursuing fund recapitalisations at significantly higher rates (62%) compared with their North American and European counterparts, who are instead leaning heavily into secondaries (49% and 42%).

This comes after last year saw distribution rates reach just 13%, less than half the levels seen during the more active distribution years of 2017 to 2018.

Ben Wyburd, head of Apac private assets products at MSCI, said, “This year’s survey highlights that Asian GPs are contending with structural pressures, particularly around cross-border capital complexity and regulatory volatility.”

“The gap between awareness and readiness leaves firms exposed to risks already on their horizon, pointing to the need for connected infrastructure built on integrated and reliable data systems to navigate a world of compounding risks and evolving LP expectations.”