2026 Private Markets Outlook: Executive summary

As we look towards 2026, three macro themes—broadening, steepening, and weakening—shape the investment landscape. Broadening suggests expanding opportunities across regions and asset classes, while steepening refers to yield curves that may encourage shifts from cash to riskier assets due to falling short-term interest rates. Weakening of the US dollar presents favorable conditions for emerging markets and poses significant considerations for portfolio management strategies.

The backdrop includes new highs in US equity markets amid a Federal Reserve rate-cutting cycle alongside persistent inflationary pressures. Geopolitical risks remain high with ongoing implications from trade tariffs affecting global markets. In private markets, opportunities are highlighted in private equity secondaries due to their structural advantages; asset-based finance and commercial real estate debt offer distinct risk-return profiles; while multi-family housing and industrial real estate sectors appear attractive despite concerns about the office market.

Infrastructure emerges as an opportunity sector driven by digital infrastructure needs, decarbonization efforts, deglobalization trends, and demographic shifts. Navigating these evolving landscapes will require astute manager selection given expected variability in returns across different strategies. Our comprehensive 2026 Private Markets Outlook will delve deeper into these insights shortly.

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