Investors in Europe, the Middle East and Africa are further below their target allocations to private credit than peers elsewhere, according to Goldman Sachs Alternatives' 2026 global alternatives survey. Some 65 per cent of EMEA respondents with a target allocation said they were underweight the asset class, compared with 53 per cent in the Americas, Börsen-Zeitung reported.

The survey captured the views of 225 limited partners between June and August 2026, including public and private pensions, insurers, endowments and foundations, sovereign wealth funds and family offices. The sample was split almost evenly between the Americas and EMEA, with less than 20 per cent based in Asia-Pacific.

Appetite for new commitments has cooled but not reversed. Over one-third (37 per cent) of LPs expect to deploy more capital than last year, down from 43 per cent in 2025, while 47 per cent plan to keep their current pace and only 11 per cent intend to deploy less. A lack of distributions remained the main brake on new commitments, cited by 35 per cent as the most important factor in their planning, up from 31 per cent a year earlier.

Most LPs said a meaningful share of their commitments over the past 12 months were re-ups with existing managers. When adding new managers, 78 per cent cited track record as the most important factor. "New managers have to earn their allocations," said Mike Brandmeyer, global head and chief investment officer of the external investing group at Goldman Sachs Alternatives. "Track record is critical; but investors now want to see underwriting discipline, a clear edge over competitors, and a manager's ability to adapt to structural shifts, especially those driven by AI."

Geopolitical risk was the top investment risk for LPs for the third consecutive year, and weighed most heavily on EMEA investors: 44 per cent named it their biggest single risk, against 30 per cent in the Americas. According to free-text responses, some LPs are reducing US exposure to make room for Europe.

For European direct lenders, the data points to latent demand. An underweight position among two-thirds of EMEA allocators, combined with some investors rotating away from the US, suggests room for further commitments to European private credit. The re-up dynamic and emphasis on track record, however, indicate that capital is likely to concentrate among established managers, leaving newer platforms to compete harder for allocations while distributions remain constrained.