KKR's High Grading: Outlook for 2026 report reveals that the global economy is entering a mature phase where "easy" productivity gains are largely priced in, prompting a strategic pivot to "High Grading." According to Henry H. McVey, Head of Global Macro & Asset Allocation at KKR, this approach advocates upgrading portfolios, capital structures, and counterparties to emphasize resilience and quality over pure market beta.

Apollo Global Management's 2026 macroeconomic outlook from Chief Economist Torsten Slok warns that the US economy faces a near-term stagflationary environment—with growth softening due to trade frictions and tariffs while inflation remains stuck near 3%—before an AI-fueled reacceleration takes hold, creating a complex backdrop that Slok compares to the 1970s and requires investors to position for higher-for-longer interest rates.

Private markets are experiencing a "quarter of adjustment" with higher tariffs, lower interest rates, and increased policy clarity driving renewed activity. According to Partners Group's Q3 2025 Private Markets Chartbook, deal volumes are rebounding from 2024 lows as trade negotiations provide greater economic certainty and Federal Reserve rate cuts support portfolio company financing costs.

Global private equity fundraising is on track for its weakest year since 2020 — and lowest fund count in over a decade — with just $224.9B raised across 248 vehicles by midyear, according to KPMG’s Pulse of Private Equity Q2’25. The slowdown reflects muted exit activity in recent years, as GPs struggle to return capital to LPs and face tougher fundraising conditions.

Private credit markets are experiencing explosive growth as traditional bank lending retreats, creating a fundamental shift in how companies access capital and investors generate returns. What started as a $2 trillion niche market serving private equity sponsors has evolved into a $30 trillion global opportunity encompassing infrastructure, real estate, and investment-grade corporate lending.

Jacob Miller, co-founder and Chief Solutions Officer at Opto Investments and former Bridgewater Associates investor, warns that private markets face a fundamental shift as three massive 40-year economic tailwinds are reversing course.

Apollo partners with major banks to trade private credit, potentially blurring public-private lines. $5B+ mega-deals dominate as Blackstone buys NYC pension stakes, India sees record $3.4B credit deal. UK mandates pension private allocation while ECB intensifies oversight. PE faces exit crisis with 12K portfolio companies stuck, distributions down 70%. Shadow banking hits $1T as retail access expands amid regulatory debates.RetryClaude can make mistakes. Please double-check r

The US economy experienced a 0.3% GDP contraction in Q1 2025, its first real decline since 2022, as trade policy uncertainty severely disrupted business planning and market confidence. According to PitchBook's "False Start" Q2 2025 Quantitative Perspectives report, the April "Liberation Day" tariff announcement has shifted the US from expected sustained growth into potentially recessionary territory.

Partners Group's Q2 2025 Private Markets Chartbook reveals a significant shift in the investment landscape as policy-driven volatility creates strategic buying opportunities for nimble private market investors.

David Gross, co-managing partner of Bain Capital ($185B AUM), shared his perspective on global investment opportunities with Goldman Sachs' Allison Mass. Speaking from his background as a founder of Bain's Asia business, Gross outlined why the firm remains bullish on the US economy, Japan's maturing buyout market, and selected European opportunities despite macroeconomic uncertainty.

Private equity optimism rises for 2025 despite valuation concerns and macroeconomic caution.

Deerfield Management partners with Qatar Investment Authority to boost healthcare innovation and startup ecosystem in Qatar and MENA region.

VC market poised for 2025 renaissance led by unicorn IPOs and M&A activity, marking potential end to three-year exit drought.