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Overview
London Hot Topics 2026 brought together fund managers, investors and advisers to discuss some of the most pressing issues currently shaping the investment management industry.
While discussions ranged from liquidity management and fund finance to tax, regulation and investor relations, several common themes emerged throughout the day. Together, they paint a picture of an industry that continues to evolve rapidly while facing increasing demands for transparency, governance and flexibility.
Below are five themes that stood out.
In depth
1. Governance is becoming a competitive advantage
One theme surfaced repeatedly throughout the event: governance.
Whether discussing liquidity management, valuations, fund finance, regulatory compliance or investor relations, speakers consistently highlighted the importance of robust governance frameworks and effective decision-making.
The conversation reflected a broader market shift. Governance is no longer viewed solely as a compliance requirement. Increasingly, it is becoming a key differentiator for managers seeking to build investor confidence, navigate complexity and demonstrate resilience in challenging market conditions.
As regulatory scrutiny continues to evolve and investors ask more sophisticated questions, firms that can demonstrate strong governance and well-documented decision-making processes are likely to be better positioned for long-term success.
2. Liquidity management requires preparation, not reaction
Liquidity remains a critical consideration for fund managers, particularly in an environment where market conditions can change rapidly.
Speakers stressed the importance of ensuring that liquidity terms are aligned with the underlying investment strategy and portfolio characteristics. Rather than designing terms around investor expectations or market convention, managers should ensure that redemption rights, lock-ups and other liquidity provisions reflect the realities of the assets being managed.
The discussion also highlighted the importance of preserving optionality through mechanisms such as gates, suspensions and redemption-in-kind provisions. These tools are often negotiated during periods of calm but become most valuable during periods of stress.
Perhaps most importantly, the panel emphasised that effective liquidity management is not solely about legal documentation. Communication, governance and stakeholder management remain essential to maintaining investor confidence when markets become more challenging.
➜ Read more: Structuring smart: managing liquidity constraints – learn what’s changing and why
Christopher Hilditch and Amy MacDonagh
3. Fund finance is moving into the mainstream
Fund finance continues to evolve, with NAV facilities increasingly becoming part of the core infrastructure of private markets.
What was once considered a niche financing solution is now being used more broadly to support portfolio management, liquidity planning and capital efficiency. Speakers noted that the market has expanded significantly in recent years and continues to attract growing interest from both managers and lenders.
At the same time, the discussion highlighted that rapid growth inevitably brings increased scrutiny. Investors are no longer simply asking whether fund-level leverage is being used; they are increasingly focused on how it is governed, monitored and disclosed.
As the market matures, governance, collateral verification and transparency are likely to become just as important as access to financing itself.
Polly O’Brien and Vlad Maly
4. Opportunity remains, but complexity is increasing
Across both the tax and regulatory discussions, speakers highlighted a common theme: opportunities continue to exist, but navigating them requires careful planning.
The UK continues to signal its support for the investment management sector through a range of tax and regulatory reforms designed to simplify certain aspects of the operating environment. At the same time, managers must continue to navigate evolving requirements relating to carried interest, investment manager exemptions and broader compliance obligations.
Similarly, discussions around sanctions, cryptoassets, tokenisation and retailisation demonstrated that innovation is creating new opportunities for growth. However, these opportunities are accompanied by increasingly complex legal, regulatory and operational considerations.
For managers, the challenge is not simply identifying opportunities but ensuring they have the governance frameworks and expertise necessary to pursue them effectively.
Nick Fagge and Elizabeth Spencer
Christopher Avellaneda and Karen Butler
5. Investor alignment is driving product innovation
In a challenging fundraising environment, investor expectations continue to evolve.
Speakers observed that investors are increasingly seeking customised solutions, greater transparency and structures that more closely align with their specific objectives. As a result, managers are responding with innovative approaches to product design, including dislocation funds, co-investment vehicles, customised share classes and increasingly sophisticated side letter arrangements.
The discussion highlighted that successful fundraising is no longer driven solely by investment performance. Managers are increasingly differentiating themselves through creativity, flexibility and a willingness to tailor solutions to investor needs.
Ultimately, alignment is becoming a strategic advantage, helping managers attract capital, strengthen relationships and build long-term investor confidence.
➜ Read more: Aligning with your investors: managed accounts, expenses and side letters
Josh Dambacher and Lee Smith
Looking ahead
The discussions at London Hot Topics 2026 highlighted an industry that continues to adapt to changing market conditions, evolving regulation and increasingly sophisticated investor expectations.
While each panel focused on different challenges, a common theme emerged: the firms best positioned for success will be those that combine strong governance with flexibility, innovation and a clear understanding of investor needs.
As the investment management landscape continues to evolve, these themes are likely to remain firmly on the agenda in the months ahead.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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