Private Markets Extended Q2 2026

The 2Q26 Private Markets report highlights a recovery in private equity valuations and a cautious outlook for private debt amid geopolitical tensions in Iran. It emphasizes thematic opportunities in AI, energy transition, and infrastructure as essential portfolio diversifiers.

Key Takeaways

• 1.Geopolitical conflict in Iran and AI disruption are the primary risks weighing on the global outlook, necessitating a selective, quality-focused approach in private markets.
• 2.Private Equity is entering a recovery path, with attractive valuations relative to public markets (near all-time high discounts), particularly in middle-market and value-oriented strategies.
• 3.Private Debt returns are normalizing and face headwinds from tighter spreads and rising default rates in smaller firms, shifting preference toward upper-middle-market, senior-secured loans.

Table of Contents

• Executive summary
• Private Equity
• Private Debt
• Real Estate
• Infrastructure
• Appendix

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