The PE industry continues to face headwinds, according to Paul Weiss’ annual Private Equity Fundraising: Key Trends and Market Survey report (Report). Notably, fundraising is down year-over-year and there is a significant ongoing distribution overhang, creating “one of the most LP-favorable environments in years,” according to the Report. LPs are wielding their negotiating leverage to focus on fees, expenses and offsets; fund governance; and GP conduct. To assess how those market concerns are being reflected in new funds, the Report examines selected terms from over 50 recently raised PE funds (Surveyed Funds), each of which sought to raise at least $2.5 billion. Nearly three-quarters of the Surveyed Funds were formed by firms among the top 100 firms measured by PE assets under management. The Report covers fees and expenses; GP capital commitments; offering periods, commitment periods and fund duration; LP protections; and co‑investment programs. This article parses the Report. See our coverage of previous Paul Weiss PE fundraising reports from 2025, 2024 and 2022.