Private Markets Five Key Debates

This report reviews the performance and risks of private market strategies in 1H26, focusing on evergreen structures, AI-related investment opportunities, and the health of the direct lending market.

Key Takeaways

• 1.Private markets performance has generally improved, but capital formation remains constrained by slow distributions and cautious LP sentiment.
• 2.Evergreen funds are valuable for flexibility but do not eliminate the underlying illiquidity of private assets, as seen in recent redemption gating.
• 3.Direct lending is maturing rather than in crisis, with rising dispersion of outcomes between high-quality sponsor-backed borrowers and lower-tier firms.

Table of Contents

• Key risks of investing in private markets
• Executive summary
• Are private assets still worth investing in?
• The evergreen structure under scrutiny
• AI / Software
• Is private credit (still) in a crisis?
• What if stagflation?

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