Understanding Risk and Opportunity in Private Markets

This document is a report that discusses the evolving landscape of private markets as of June 2026, focusing on risk, resilience, and opportunities amid macroeconomic uncertainty. It outlines key themes affecting private equity, credit, and infrastructure, emphasizing the importance of disciplined underwriting and selectivity in investment strategies. The report highlights that private equity valuations are currently attractive compared to public markets, with capital increasingly directed towards high-quality assets. It notes that while exit activity is gradually recovering, it remains uneven, with higher-quality assets likely to exit first. In private credit, the fundamentals are resilient, although early signs of stress are emerging. The document also addresses the role of artificial intelligence in shaping investment opportunities and risks, advocating for a consistent risk framework to navigate these complexities. Overall, it presents a nuanced view of the current investment climate, stressing the need for clarity and strategic decision-making in portfolio construction.