Limited partners are accelerating their search for alternatives beyond US private markets as geopolitical tensions reshape investment strategies. APAC is emerging as a key beneficiary of this diversification push, with investors seeking to reduce exposure to American assets amid ongoing government volatility. The shift comes more than a year after President Trump's tariff announcements prompted initial reassessment of US private equity allocations.

Tiered carry structures are creating friction in continuation funds, as different investor classes negotiate varying fee arrangements. Meanwhile, LGT is expanding its US presence through a strategic fund of funds acquisition, signaling continued confidence in American markets despite broader diversification trends. These developments reflect the complex balancing act LPs face between managing risk and maintaining returns.

The diversification drive represents a fundamental shift in how institutional investors approach private markets. While some firms like LGT double down on US expansion, the broader trend points toward a more geographically balanced portfolio strategy. This rebalancing could have lasting implications for fund managers and investment opportunities across global markets.