Global Private Markets Quarterly

Carlyle AlpInvest's Q2 2026 report details a major market pivot toward industrials and energy amid geopolitical volatility in the Middle East. While software faces valuation resets and credit stress, private markets remain resilient, driven by AI infrastructure demand and record secondaries activity.

Key Takeaways

• 1.A significant sector rotation is occurring from 'asset-light' software companies to 'hard' industries like utilities, energy, and industrials, which made up 46% of buyout volumes in Q1 2026.
• 2.Geopolitical conflict in the Middle East and the closure of the Strait of Hormuz caused a major energy shock, spiking Brent oil to over $100/bbl and hitting energy-dependent Asian markets like Japan and South Korea.
• 3.The software sector experienced a 'Saas-pocalypse' with market caps dropping 30% due to AI disintermediation fears and credit stress, where software leveraged loans traded down nearly 8%.

Table of Contents

• Executive summary
• Markets overview
• Trends in private equity
• Trends in liquid and private credit
• Final thoughts
• Authors

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