Inside Private Markets: What LPs are really looking for in 2025

As institutional capital keeps flowing into private markets, Limited Partners (LPs) are asking sharper questions and they’re not just about returns.

“Performance will always matter,” says Oliver Freigang, CEO and co-founder of qashqade. “But what we’re hearing more and more from LPs is this: Can I trust the numbers I’m seeing? Can I trace the logic behind them? That’s where the conversation is going.”

Over the past year, we’ve seen a clear shift. LPs (from pension funds to family offices) are looking beyond performance metrics and digging deeper into how funds operate. The focus now includes transparency, fee mechanics, regulatory compliance, and the ability to stress-test scenarios, not just post-facto results.

And they’re not wrong to ask.

Beyond the Pitch Deck: Clarity Over Complexity

Private equity and credit deals have never been simple. LPAs are dense. Fee structures vary. What looks similar on paper can result in very different net outcomes over time.

Too often, LPs are forced to rely on static spreadsheets, fund-provided summaries, or assumptions tucked away in footnotes. That might have passed in 2010. It won’t fly in 2025.

According to CSC’s recent Limited Partners Guide to Fund Operations, a full 68% of LPs now prioritize operational transparency over even performance track record (52%). It’s no longer about gut feel, it’s about operational precision.

Freigang puts it simply: “You wouldn’t invest in a company without knowing how it runs. Why should a fund be any different?”

The New Due Diligence Checklist

So what exactly are LPs looking for?

• They want to know how fees and carried interest are actually calculated.
• They want to test how those mechanics hold up under different return scenarios.
• They want to be confident that what's written in the LPA matches what gets modeled, allocated, and distributed.

This is where platforms like qashqade come in. We help LPs:

• Validate the logic behind waterfalls and fee models
• Translate complex LPA clauses into clear, structured terms
• Compare fund economics across managers
• Forecast real outcomes before a commitment is made

The result isn’t just faster analysis. It’s better decisions.

Why This Matters Now

There’s a reason why nearly every institutional investor we speak to is rethinking their operational due diligence process.

CSC’s data shows that:

• 92% of LPs prefer GPs who outsource fund administration to third-party providers
• 66% consider regulatory compliance more important than performance history
• GPs who fail to demonstrate strong operational infrastructure are now flagged early

That’s a wake-up call. And LPs aren’t just asking politely, they’re setting new expectations for transparency, auditability, and real-time visibility.

“LPs have learned from experience,” says Freigang. “They want to know before signing that the numbers will hold up. Not just on paper, but in actual distribution mechanics.”

It’s Not Just About Trust. It’s About Tools.

Audit firms can confirm inputs. But they don’t validate the logic. Summaries don’t show how the waterfall behaves under stress. Legal clauses are open to interpretation.

Our view? LPs need tools that help them validate everything before any capital goes out the door.

That’s why we built qashqade: to give LPs the ability to go deeper, move faster, and make more confident allocation decisions.

See the Full Picture

We recently published a guide that walks through how LPs are using qashqade to bring clarity to fund commitments, fee validation, and return forecasting.

It’s designed for anyone responsible for operational due diligence.

Download the LP Guide here: The LP’s Guide to Smarter Commitments

If you’re ready to model smarter and commit with confidence - let’s talk.