In this PERSPECTIVES Special we look at the outlook for private markets. We consider recent developments supporting greater investor participation, the macroeconomic factors affecting investment allocation and our base case outlook and risks for 2026. We address the current state of the private equity, private credit and private infrastructure sectors in the US, Europe and APAC and how they might develop from here.
Key takeaways
- Wealth and retail participation in alternative investments is expected to increase further, supported by legislative encouragement and structures which start to blur the differences between public and private markets.
- Private equity picked up in H2 2025 and is likely to expand further in 2026 with a greater focus on the mid-market segment. Private credit AuM is also expected to expand, with asset-backed financing’s share growing further.
- A widening infrastructure gap will continue to require private as well as public capital. Many infrastructure projects will reflect escalating AI demand but government-led initiatives will also have a major role in Europe.
