What began in 2014 as an effort to give economists a voice in an environment dominated by lawyers has now become the epicenter of empirical analysis on financial oversight. At the opening of the SEC Annual Conference, the balance of more than a decade of supervision delivered a clear warning: regulation cannot be a series of “random acts” of punishment.
One of the topics addressed during the event was the analysis of the “broken windows” policy. “This theory, adapted from urban criminology, suggests that prosecuting minor infractions prevents larger crimes. However, the analysis presented questions whether this approach can be transferred to the complex world of white-collar crime,” experts noted during the conference.
Mark T. Uyeda, SEC commissioner, explained that while empirical evidence suggests that monitoring minor infractions can reduce serious financial misconduct, the industry warns of a dangerous side effect: the diversion of limited resources. “Abusing discretionary authority undermines the predictability that markets require,” participants heard during the forum, noting that imposing sanctions over technical issues — such as the use of personal mobile devices for work communications — does not always reflect a consensus on what constitutes unacceptable conduct.
The debate also revolved around the SEC’s own success metrics. In this regard, there is concern that if the success of an administration is measured solely by the number of enforcement actions and the amount of fines collected, regulatory staff may prioritize quantity over the quality of financial justice. According to the experts, the complexity of the current regulatory framework leaves excessive room for “novel” legal interpretations that could chill socially valuable economic activities.
Beyond oversight, the conference also addressed the transformation of institutional savings through the use of ETFs. The figures are striking: in 2005, ETFs represented just 3.2% of assets compared with mutual funds. By 2025, that figure had climbed to nearly 30% of the market, with $13.4 trillion in assets.
According to some studies, a new phenomenon is emerging: managers of these vehicles may be incentivized to adopt highly volatile strategies to attract an increasingly broad base of retail investors, posing new challenges for system stability.
The conference concluded by reaffirming the need for academia to scrutinize the regulator. “In a market that now includes cryptoassets and overnight stock trading, data analysis presents itself as the only tool capable of ensuring that public policies are not merely political reactions, but decisions grounded in economic reality,” Uyeda reminded attendees.
Photo courtesyDaniel Ender, portfolio manager on Robeco’s credit team.
One of the clearest trends in the credit market is how tight spreads are in historical terms. In the view of Daniel Ender, portfolio manager on Robeco’s credit team, saying that this translates into a phase of “market complacency” offers an overly simplistic view of what is happening in this asset class. In this interview, we spoke in depth with Ender about this and other trends in the credit market.
After the strong tightening of spreads in recent quarters, do you believe investment-grade credit still offers relative value, or are we already entering a more complacent phase?
I think it very much depends on how value is defined; it is quite subjective. Spreads are undoubtedly tight in historical terms, but labeling this as pure complacency is too simplistic. The key point is that the starting point for total returns remains attractive, which continues to support demand, especially from yield-focused investors. That said, if you look at spreads as compensation for risk, the picture is less convincing. We believe spreads offer a limited cushion against the range of risks that are building up in the system. So, it is not outright complacency, but rather a market supported by strong technical factors and demand for yield. From here, returns will need to come much more from issuer selection than from further broad spread compression.
What risks do you think corporate credit investors are currently underestimating?
I think the main risk is that, on the surface, everything appears to be fine, but underneath, more stress is building. High interest rates themselves are not the problem; companies have largely adapted to them. The issue is what happens when higher financing costs are combined with slowing growth and more pressure on certain business models. We are starting to see this in some market segments, especially in more leveraged companies and sectors facing disruption, such as certain areas of software. Refinancing is becoming more difficult, and at the same time, margins are under pressure. It is not a systemic problem at this stage, but it is something that could gradually spread. Markets tend to ignore it until it becomes more visible, and then the adjustment can be quite rapid.
In your case, how are you currently balancing carry and quality in the portfolio?
We are keeping the portfolio beta broadly neutral because spreads do not justify taking on more risk at this point. The focus is clearly on generating alpha through issuer selection rather than relying on beta. In practice, that means avoiding areas with limited transparency and growing stress, such as private credit proxies and BDCs; being selective in new issues where concessions are attractive; and favoring structures and sectors where compensation is structural rather than cyclical. This is not a “buy the dip” environment, but rather an environment where returns must be earned through selection.
We have seen strong resilience in corporate fundamentals. To what extent do you believe that strength can be maintained if growth continues to slow?
They have been very resilient so far, but we are starting to see early signs of pressure. Consumption is being supported by low savings levels, which is not sustainable, and the labor market is gradually weakening. At the same time, higher energy prices are pushing inflation upward and growth downward. So, we do not expect a sharp deterioration, but rather a gradual erosion of fundamentals if this situation continues.
From a sector perspective, where are you currently seeing the greatest opportunities, and conversely, where do you see the greatest risk of excessive spread compression?
We are positioning around the idea of HALO: Hard Assets, Low Obsolescence. These are sectors such as infrastructure, utilities, pipelines, or mining, where assets are tangible, difficult to replicate, and less exposed to disruption. On the other hand, we see clear risks in areas exposed to artificial intelligence disruption, particularly software, and in segments heavily dependent on private credit financing. What is interesting is that, beneath the surface, dispersion is already increasing, even though overall spreads still appear tight.
Have we already forgotten about ESG? What role is ESG integration playing in credit portfolio construction?
It remains a central part of how we assess credit risk; it has not been sidelined at all. We continue integrating ESG analysis into every issuer we cover as part of our fundamental credit work, including our internal scoring frameworks and credit committee discussions. So, it is not a separate additional layer; it is embedded in how we form our investment views. More broadly, we do not see returns and sustainability as mutually exclusive. Recent geopolitical developments have brought it back to the center of the agenda, especially in Europe, which is favorable for parts of the renewables and infrastructure space. So, if anything, ESG is evolving rather than disappearing: it is becoming increasingly linked to resilience, security of supply, and long-term credit quality.
Looking ahead to the next 12 months, what do you believe will be the main catalyst that could significantly change credit market behavior?
The main catalyst is the interaction between growth and inflation. The current energy shock is a good example of that dynamic: it is inflationary, but at the same time it weighs on growth, creating a difficult backdrop for credit. There are several catalysts that could alter that balance. A more pronounced slowdown in growth, for example through weaker employment data, including possible second-round effects stemming from artificial intelligence disruption, would be one. A prolonged conflict in the Middle East leading to structurally higher energy prices and potentially forcing a shift in central bank policy would be another. Private credit is part of the risk landscape, but we do not view it as systemic. The more relevant point is that negative headlines coming from that segment could affect market sentiment and trigger episodes of volatility in public markets. So, although the base case remains supported by solid technical factors, the main risk is that the macroeconomic environment turns out to be less benign than what the market is currently pricing in.
The sharp depreciation of the dollar against the Brazilian real has been good news for Avenue. In April, the leading platform for access to the U.S. market recorded the best monthly fundraising in its history, according to Avenue’s Institutional Director, Caio Azevedo. The company does not disclose figures.
“We had the best fundraising ever recorded,” the executive says in an interview with Funds Society, attributing the movement to exchange rate volatility. “Whether up or down, we managed to attract funds very well. Usually, inflows into the platform are lower during periods of less fluctuation,” he notes.
He says the current sentiment is something similar to FOMO (Fear of Missing Out) on the part of the public, which sees the dollar at 5 reais as a good buying price. And the flow is spread across various channels, such as wealth, advisory, and family offices. The destination of that capital is concentrated mainly in the most popular U.S. equities.
“S&P, Nasdaq, ETFs, and stocks are still the main ones,” he says. “We still have a relevant flow toward the AI sector. Toward the Magnificent Seven.”
ETPs Enter the Platform
On the institutional side, Azevedo continues seeking to expand the offering of structures for the B2B market. In this context, Avenue is preparing the launch of ETPs (Exchange Traded Products) in partnership with FlexFunds, especially targeting smaller advisory firms and asset managers seeking access to offshore structures without the need to establish their own vehicles.
ETPs are internationally listed certificates — usually through Ireland and distributed by platforms such as Euroclear — that allow investment strategies to be “packaged” into a tradable asset with its own ISIN. In practice, the structure works as a simpler and more efficient alternative to traditional offshore funds, reducing operational costs and facilitating the international distribution of financial products.
“If you are an asset manager or advisor and do not have the scale to operationalize an offshore structure, the ETP solves that,” he says.
According to him, there are already conversations with more than 15 asset managers and advisory firms interested in the model. The expectation is that the structure will be operational within the next three to four months. The product is expected to function mainly as a tool for the institutional and advisory market, allowing strategies to be packaged into an international asset with its own ISIN.
Platform Launches Fund with Verde Asset
The timing could not be better for some Brazilian asset managers that have begun to see Avenue as a new way to attract resources from local investors: through international funds. With a Cayman-based structure called Avenue Funds Hub, the company created a new potential distribution channel for Brazilian asset managers interested in reaching offshore investors.
“We set up a structure that facilitates access to those funds. Everything is operationalized by Avenue,” he explains. According to him, asset managers do not necessarily need to have their own offshore structure to access the platform.
“We managed to create a simpler, more direct, and less costly structure,” he says. The movement began with names already well known in the Brazilian market, such as Kinea, Itaú Asset, and Verde, which started making global products available through the platform’s structure.
In the case of Verde, the asset manager debuts on Avenue with a global equity strategy heavily exposed to the artificial intelligence theme, betting that the current cycle of investment in technology is still far from over. The portfolio combines companies linked to infrastructure, semiconductors, and U.S. technology, reflecting the firm’s view that AI represents a structural transformation of the global economy.
“It’s curious, because when Brazilians think about investing abroad, they always imagine the major global players. But investors also want access to the brands they already know here in Brazil,” says Azevedo.
According to him, Avenue is in talks with several other Brazilian asset managers interested in accessing the international channel.
“A lot is happening, and there are names that clients would really like to access,” he says.
In addition to Brazilian funds, the company also distributes a broad international platform. Today, the platform includes more than one thousand global funds, including fixed income, equities, alternatives, and UCITS strategies.
LinkedIn / Carmen Alonso, Global CEO of Santander Asset Management as of July.
Banco Santander has appointed Carmen Alonso as the new Global CEO of its asset management division, Santander Asset Management (SAM). Alonso was Head of Clients for Europe and the Middle East at the alternative asset manager Patria Investment, and her appointment will become effective next July.
This appointment comes four months after Miguel Ángel Sánchez Lozano was named interim CEO of the asset manager to replace Samantha Ricciardi in the role.
Alonso has more than 30 years of international experience in asset management and investment banking. Before serving in her role at Patria Investments, she was Head of the UK and Iberia at Tikehau Capital. Previously, she held the position of Managing Director at Morgan Stanley in the leveraged finance and debt acquisition area. She has also held senior positions at UBS, Merrill Lynch, and HVB.
She holds a degree in Business Administration from Boston University and completed the Stanford Executive Program at the Stanford Graduate School of Business. In addition, she holds an MBA from Babson College.
Capital markets appear to be walking a tightrope: while the global economy continues to show remarkable resilience, headwinds—especially those stemming from oil prices—are becoming increasingly evident. The central issue remains the conflict between the U.S. and Iran and their fragile truce. After Donald Trump described Iran’s response to the latest U.S. peace proposal as unacceptable, the week begins with some risk aversion, reversing part of the gains seen last week. Now that most of the corporate earnings season has concluded, investors’ attention will focus more heavily on the Strait of Hormuz and whether traffic through this strategic chokepoint improves.
In the opinion of Stefan Rondorf, Senior Investment Strategist, Global Economics & Strategy at AllianzGI, “markets have learned to live with geopolitical tensions, but that does not mean these risks have disappeared. Quite the opposite: recent developments show that the ceasefire remains extremely fragile and there is barely any end to the crisis in sight.”
This risk contrasts with market behavior, which closes the period on a constructive note. “Investor optimism resurfaced amid the possibility that Washington and Tehran could reach an agreement that would allow the Strait of Hormuz to reopen and introduce a moratorium on uranium enrichment. As a result, tensions in equity markets gradually eased. Oil prices fell sharply, moving back below $100, and expectations for a lasting resolution to the conflict in the Middle East increased,” highlight analysts at Edmond de Rothschild AM.
For Manuel Pinto, Head of Research at XTB, after months of talking about the famous TACO Trade—the idea that Trump always ends up backing down when economic tensions begin affecting markets—Wall Street is beginning to adopt a new concept: the NACHO Trade. “The term refers to Not A Chance Hormuz Opens, meaning the growing sense in the market that the Strait of Hormuz could remain partially blocked for longer than expected. And that has enormous implications for inflation, oil, central banks, and bonds. The big difference is that while stock markets continue reaching all-time highs thanks to the momentum from artificial intelligence and corporate earnings, the bond market is already beginning to price in a much more uncomfortable scenario: persistently high oil prices, more stubborn inflation, and elevated interest rates for longer. That is why the NACHO Trade is causing very aggressive movements in the U.S. yield curve. Long-term bond yields continue rising while the market reduces expectations for rate cuts in 2026. In other words, Wall Street is beginning to assume that the Federal Reserve could take much longer to ease monetary policy if the energy shock continues putting pressure on inflation,” he explains.
Sell in May?
In this context, investors are once again hearing the stock market saying “Sell in May and go away, and come back on St. Leger’s Day,” according to which investors consider selling their holdings in May to avoid lower returns during the summer and autumn months, returning in November.
However, global equity markets have staged a strong recovery in recent weeks, overcoming prevailing uncertainty with surprising agility. After falling for five consecutive weeks through the end of March, the S&P 500 is on track to achieve its sixth consecutive week of gains, while both the Nasdaq and the S&P 500 remain near all-time highs.
According to Mark Haefele, CIO of UBS Global Wealth Management, recent gains have been driven by hopes for a more convincing de-escalation in the Strait of Hormuz, adding to favorable factors such as strong corporate earnings, resilient fundamentals, the Fed’s inclination to maintain flexible monetary policy, and enthusiasm related to AI.
“With a less negative geopolitical backdrop for markets, we believe they can once again focus on the fundamentals that truly support the rally in global equities. We maintain an attractive view on U.S. equities and expect the S&P 500 to rise toward year-end, supported by healthy earnings growth and a monetary environment that remains favorable. Within U.S. equities, we continue to favor the consumer discretionary, financial, healthcare, industrial, and utilities sectors, while maintaining a constructive stance on areas of the market linked to AI,” says Haefele.
Investment Ideas
Jessica Henry, Head of Equity Investments at Federated Hermes Limited, for example, sees opportunities in emerging markets, where favorable demographics, rising incomes, and exposure to attractive end markets continue supporting long-term growth. “Despite these favorable structural tailwinds, valuations remain attractive compared with developed markets, representing an appealing risk-reward opportunity. We also see value in capital-intensive businesses and commodity-sensitive stocks, which benefit from a favorable environment of higher commodity prices driven by geopolitical conflicts, supply constraints, and long-term structural shifts in demand,” adds Henry.
Finally, analysts at Neuberger believe that global growth and equity markets will remain resilient. “Although we remain constructive on small-cap companies, we believe the current macroeconomic environment slightly favors large, high-quality companies, especially in a context of increasing geopolitical risk and uncertainty,” they note.
And they argue: “Consider that the forward P/E ratio of the S&P 500 has fallen 10% from its October 2025 peak. Meanwhile, earnings growth among large-cap listed companies remains strong: since the start of the conflict in Iran, forward earnings estimates for large companies have increased by 5%, with technology firms accounting for two-thirds of that increase. This trend suggests that, despite persistent macroeconomic uncertainty, the risk-return relationship for large-cap companies remains attractive.”
The migration of Latin American capital to the United States has ceased to be a temporary phenomenon and has become a structural trend in the global wealth management business. Today, the financial industry estimates that around $1 trillion belonging to Latin American investors is held outside their countries of origin, mainly channeled into U.S. financial platforms, international investment funds, and offshore structures managed from centers such as Miami, New York, and Texas.
According to the latest global wealth report from Boston Consulting Group, worldwide financial wealth held outside countries of origin reached $14.4 trillion in 2024, growing 8.7% annually, driven precisely by demand for geographic diversification and the search for financial “safe havens.”
Various sources such as Cerulli Associates, Latin Asset Management, and Boston Consulting Group provide estimates of the amounts of wealth that has flowed abroad from some of the region’s most representative countries: Brazil between $250 billion and $350 billion; Mexico between $180 billion and $250 billion; Argentina more than $300 billion; Colombia between $80 billion and $120 billion; Chile around $100 billion; and although figures for Venezuela are not publicly available, they are estimated at no less than $30 billion.
What Are They Seeking?
Behind this movement lies not only a search for global diversification or wealth sophistication. Increasingly, perceptions of political instability, regulatory uncertainty, currency volatility, and tax pressure across several regional markets also play a major role. As a result, a significant portion of Latin American private savings that could finance local funds, productive projects, or strategic investments within their own economies is instead finding refuge in jurisdictions considered more predictable and stable.
The phenomenon also reflects a profound shift in the mindset of high-net-worth families and Latin American institutional investors, who prioritize access to global markets, wealth protection, and international flexibility over domestic concentration of their assets. According to global reports from Boston Consulting Group, Latin America remains one of the regions with the highest proportion of private wealth placed offshore relative to total wealth. Historical studies by the firm estimate that nearly a quarter of Latin American financial wealth is held outside the region, a considerably higher percentage than in developed markets such as the United States, Western Europe, or Japan.
Miami has consolidated itself in recent years as the main hub for receiving Latin American capital outside the region. International banks, RIAs, multifamily offices, private equity firms, and wealth management platforms serving investors primarily from Brazil, Mexico, Argentina, Colombia, Chile, and Venezuela operate from there.
The “Flight,” a Phenomenon
The acceleration of this phenomenon intensified after the pandemic, alongside rising political tensions, tax changes, polarized electoral processes, and currency depreciations across several Latin American countries. This was compounded by the growth of the international private banking industry and the expansion of U.S. platforms specializing in high-net-worth Latin American clients.
The sophistication of the phenomenon has also changed. Two decades ago, much of the outflow of Latin American capital was primarily driven by wealth protection and defensive dollarization. Today, the movement also incorporates global asset allocation strategies, alternative investments, private credit, venture capital, international real estate, and global succession planning.
For Latin America, the problem goes beyond the financial sphere and is beginning to become a structural challenge for economic growth. Various analysts point out that a significant portion of these resources could be financing infrastructure projects, corporate debt, entrepreneurial capital, industrial expansion, or local capital markets. In countries with low levels of stock market depth such as Mexico, Colombia, or Peru, the partial return of this capital could transform the size of their financial markets, increase liquidity, and expand corporate financing sources.
Argentina is probably the most extreme example. Various private estimates suggest that Argentine assets held outside the local financial system far exceed the country’s international reserves and represent a significant share of GDP. The persistence of currency controls, high inflation, and recurring crises has consolidated over decades a structural culture of dollarization and offshore wealth management. Meanwhile, in Brazil and Mexico, although the phenomenon has a defensive component, it also reflects the growing internationalization of business families and family offices. Many of these structures already operate with a global logic, with simultaneous investments across Latin America, the United States, Europe, and Asia.
However, industry specialists warn that the sustained outflow of private wealth limits the region’s ability to build deeper and more sophisticated financial ecosystems. It also restricts the development of local alternative markets such as private equity, venture capital, infrastructure, or technological innovation financing.
The regional paradox is evident: while Latin America faces historic investment needs in infrastructure, energy transition, digitalization, housing, and productivity, a significant portion of its private savings finances international assets outside its economies. At the same time, the wealth migration trend appears far from reversing in the short term. The legal stability of the United States, the depth of its financial markets, access to sophisticated products, and the perception of greater institutional predictability continue to position the U.S. as the primary destination for Latin American offshore wealth.
Blackstone is focusing on artificial intelligence (AI) and technology. According to reports stemming from an internal memorandum, the world’s largest alternative asset manager is working to create a new division called Blackstone N1, which will focus exclusively on investing in these two themes.
The new unit would be led by Jas Khaira, who will continue in his role as Head of the firm’s Tactical Opportunities business for the Americas, and will be based in San Francisco. The structure integrates AI and technology investments for BXPE, the firm’s private equity fund aimed at high-net-worth investors, together with its growth and Tac Opps strategies.
In a memorandum to employees obtained by Bloomberg, CEO Steve Schwarzman and President Jon Gray wrote: “AI is transforming every business across the firm, and we need a dedicated and specialized team, located at the center of this critical area, to further strengthen our existing presence on the West Coast, where the most innovative AI and technology companies are being developed.” In this regard, the reorganization reflects the extent to which AI has come to dominate Blackstone’s earnings narrative.
Cerulean blue was never just a color, but something more than fashion. It was about how decisions made at the top of the market ultimately influence everyone else’s purchases. To mark the release of The Devil Wears Prada, eToro applied this same idea to investing.
eToro, the trading and investment platform, created a hypothetical “Miranda portfolio” of traditional luxury stocks. The portfolio would have generated a 629% return since the release of the original film in 2006, outperforming the S&P 500 (442%) and the S&P Global Luxury Index (297%). These figures highlight how Miranda Priestly-style selectivity has historically driven superior performance in the luxury sector.
Performance of Miranda’s heritage luxury brand portfolio. Returns are expressed in USD, are not annualized, and are not a reliable indicator of future performance. Past performance does not guarantee future results. Time periods: 1 year (April 22, 2025 – April 22, 2026), 3 years (April 22, 2023 – April 22, 2026), 5 years (April 22, 2021 – April 22, 2026), 10 years (April 22, 2016 – April 22, 2026), and 20 years (April 22, 2006 – April 22, 2026)
The portfolio includes Hermès, Richemont, L’Oréal, Kering, Burberry, Christian Dior, and Ralph Lauren. Hermès was the best-performing brand over 20 years, delivering a return of 2,206%. Christian Dior generated a 467% return, Ralph Lauren 525%, Richemont 619%, and L’Oréal 344%. At the other end, Burberry delivered a 92% return and Kering 149%, reinforcing the idea that selectivity remains essential.
“If Miranda had built a portfolio in 2006, she would not have chased novelty or short-term momentum. She would have prioritized heritage, scarcity, and brand power that does not depend on the moment. That instinct aligns with what has historically driven long-term outperformance in luxury stocks,” commented Lale Akoner, Global Market Strategist at eToro.
“The strongest companies in the sector operate more like compound-growth businesses than cyclical companies. They tend to share a very specific set of characteristics: protected pricing, limited supply, and the confidence not to follow market fads. Hermès has rarely applied discounts. Ralph Lauren spent years being considered outdated by the fashion industry. L’Oréal kept selling the same products through every cycle. These may not be exciting investment stories in the short term, but they have demonstrated remarkable resilience over the long term,” explained Lale Akoner.
The short-term outlook is more uncertain, highlighting the sector’s sensitivity to macroeconomic conditions. Over the last 10 years, the basket of stocks generated a return of 194%, compared with 238% for the S&P 500. Over five years, the basket rose 33%, while over three years it delivered a return of just 11%, and 28% over one year.
Lale Akoner added: “Luxury is often viewed as a homogeneous sector, but the reality is far more selective. The dispersion in performance, that is, the difference between the best- and worst-performing brands, is significant and reflects differences in brand positioning, execution, and exposure to aspirational versus ultra-high-end demand. However, in the short term, the sector behaves much more like a cyclical sector. Demand is sensitive to global liquidity, consumer confidence, and tourism flows, especially in key markets such as the United States and China. This explains the recent volatility, despite the strength of the underlying brands.”
Over the long term, the most established brands have demonstrated their ability to protect pricing, preserve exclusivity, and defend margins throughout economic cycles. For consumers, these brands are associated with handbags, lipstick, trench coats, and polo shirts. For investors, they have delivered sustained compounded returns, provided stock selection has been disciplined. With the return of The Devil Wears Prada, the investment lesson is simple: glamour may capture attention, but durability is what generates returns.
BlackRock Aladdin has announced new private credit capabilities in Preqin, marking the first step in a broader effort to bring greater transparency, analytical depth, and a single connected view of data to the private credit space.
According to the firm, through expanded private credit data, benchmarks, and analytics, Preqin Pro enables investors to jointly analyze market trends, fund dynamics, and underlying assets across closed-end funds, Business Development Companies (BDCs), and semi-liquid vehicles, all within a unified research and analytics experience.
As private credit markets grow and diversify, the asset manager observes that clients are demanding clearer and more connected information on liquidity, risk, and returns. For this reason, the latest enhancements to Preqin begin to address a market gap by offering consistent and standardized private credit intelligence that reinforces BlackRock’s commitment to evolving its global platform to meet clients’ needs across their portfolios.
“Private credit is becoming an essential part of portfolios, but data remains fragmented, making it difficult for investors to understand risk and compare performance. This expansion combines Aladdin technology with data and analytics from Preqin and eFront to create a more unified, transparent, and robust view of private credit. It is another step toward our mission of building a more connected ecosystem that helps clients better understand risk, returns, and opportunities across their entire portfolio,” said Kunal Khara, Global Head of Aladdin Product at BlackRock.
The Enhancements
BlackRock explained that the new private credit suite, now available, includes the creation of a comprehensive view of the private credit market, from fund to asset, across different fund types, strategies, asset classes, and issuers, covering closed-end funds, BDCs, and other semi-liquid structures.
In addition, it introduces new asset-level benchmarks that provide standardized ways to converge the full spectrum of BDC and closed-end fund universes, now enabling users to assess risk and return trends in money multiples, valuation trends, leverage ratios, defaults and recoveries, capital cushion multiples, and borrower financial metrics.
The platform also includes enhanced analytics for BDCs, leveraging Aladdin technology to go beyond fund-level reporting and static disclosures by providing insights into underlying exposures, risk, and returns.
Finally, it incorporates integrated AI-powered analytics and research, enabling users to analyze market, fund, and asset data within a single environment combined with customized visualizations.
This launch is the first in a series of product enhancements aimed at fulfilling Aladdin’s mission of helping clients capitalize on the growing private credit opportunity, with the goal of bringing a higher level of transparency through data, analytics, and reporting across the portfolio.
“The enhanced private credit capabilities support a broad range of market participants. For LPs, analytics-driven insights integrated into the platform provide clearer visibility into performance, risk, liquidity, and exposure, while service providers gain a consistent and comprehensive market view to support valuation, advisory, regulatory, and transaction processes. For GPs, the platform connects standardized, cleansed, and comparable loan-level data across BDCs and closed-end private credit to support investment decisions and risk management,” the firm highlighted.
After years of tribulations, last year brought glimmers of hope for the private equity industry, with a boom in deals, capital raised, and, a fundamental piece for LPs’ liquidity needs, company exits. However, the current landscape of volatility in global markets casts doubt on the immediate future of deals, especially considering the weakness in IPO activity and the concentration in megadeals seen in the recent past.
The global private capital market began this year with considerable optimism, according to consulting firm KPMG. “A deep pool of available capital, an improved divestment environment, and a sense that macroeconomic conditions were stabilizing gave investors cautious confidence. This continued into the beginning of 1Q 2026; however, the sudden conflict in the Middle East understandably brought an initial contraction in the market,” said Gavin Geminder, Global Head of Private Equity at the firm, in a recent report.
Given the timing of the military conflict involving the U.S., Israel, and Iran, the impact was relatively contained in the first quarter. Between January and March, 4,168 private equity-related deals were announced, totaling $436 billion. Measured on a trailing 12-month basis, this marked a slight decline, from $2.2 trillion to $2.1 trillion. The number of deals fell even more sharply: from 21,026 last year to 19,682 this year.
Exits, in particular, are facing a complicated landscape, according to Geminder. Despite a solid aggregate value of $294 billion, the first quarter closed with only 635 divestment deals, including weak public listing activity of just 31 transactions. “Exit volume declined across all types of divestments, highlighting the ongoing struggle to realize assets and return capital to investors,” the executive stated.
This weakness did not affect only the public markets as a divestment engine for private capital. Figures from S&P Global Market Intelligence reflected 614 M&A transactions in the first quarter of 2026, marking a 22% decline from the 785 transactions in the previous year. That said, aggregate value increased: it rose 12.6% in the first quarter, from $137.31 billion to $154.64 billion.
First-Quarter Signals
Amid corporate earnings season, some major names in private equity are pointing to a landscape of concern, but also conviction in each investment house’s ability to execute investments. Despite the uncertainties affecting trading desks globally, managers have roadmaps to provide liquidity to their LPs.
“Suddenly, the public markets for private assets are back at the center of attention. While there could be, given the uncertainty of the war, some slowdown in monetization via IPOs, that does not mean the world’s sophisticated sponsors — along with some well-capitalized corporates — are not thinking about whether they can take advantage of certain dislocations. There are many ways to think about that,” said Denis Coleman, CFO of Goldman Sachs, during a call with investors.
Although PE sponsor activity has been slow, he noted that the U.S. financial giant expects it to accelerate. “It has been slower than we expected, but the business is sufficiently large, broad, and diversified so that even with slower sponsor activity, it does not have a major impact on the business overall,” he added, emphasizing that they are focused on generating strong exit dynamics within their portfolio.
In its own quarterly earnings call, EQT AB celebrated the largest PE sponsor-led block trade in history, achieved through the sale of Galderma, part of its eighth private equity fund. CEO and Managing Partner Per Franzén emphasized that this success came during a period of high uncertainty and volatility driven by tariffs and White House decisions.
Looking ahead, the firm expects to maintain the pace. “During this period of volatility, we remain focused on executing our exit agenda,” the executive assured investors, adding that they are targeting around 30 divestment transactions this year, in line with 2025. “Of course, everything is subject to market conditions, but what gives me confidence is that this exit pipeline is well diversified across strategies, asset classes, infrastructure, private equity, early-stage investments, and sectors.”
Blackstone also addressed the issue in its quarterly conference call. Michael Chae, Vice Chairman and CFO of the manager, highlighted that they managed to complete four IPOs within their portfolio last year, but that the outlook ahead is marked by turbulence. “Recent and significant market volatility and widespread uncertainty have had the effect of extending exit pipelines and slowing realization activity in the short term,” he commented, adding that “if there is a lasting resolution to the conflict in the Middle East, we expect robust activity in the second half of the year.”
In the coming days, Apollo, Carlyle, and New Mountain Capital will hold their own conversations with analysts and investors, offering their respective perspectives.
Better Numbers, for Fewer Players
Even before the uncertain global context complicated the outlook, last year’s private equity recovery already had nuances, especially considering the concentration in megadeals.
“Exit activity rebounded strongly in 2025, with global deal value reaching $905 billion. But 78% was concentrated in mega exits, leaving the mid-market inventory effectively stalled,” Allianz warned in a report during the first quarter. “Until liquidity broadens beyond the top tier, normalization of distributions remains structurally incomplete,” the firm stated.
In that sense, Allianz sees the industry at a “turning point,” where last year’s recovery appears more selective than broad-based.
Regarding divestment strategies, the firm sees IPOs as the missing piece, with relatively robust corporate activity — reaching a record last year with deals totaling $299 billion — and sponsor-to-sponsor activity recovering. In that regard, IPO activity appears fragile in the U.S. and deteriorating in Europe. “This suggests that IPO markets may resume in the future, although likely with structurally lower volume than in past cycles,” they added.
From PwC, global PE leader Eric Janson emphasized that, while there are signs of recovery, this type of exit remains relatively small compared with other routes. For that reason, the consultant stated in a recent report, “secondary transactions, including sponsor-to-sponsor deals and continuation vehicle transactions, are expected to remain the dominant exit route for private equity firms in 2026.”
In that regard, the expectation is that these challenges will have an impact on the industry. Ultimately, as noted in a McKinsey report, “the ability to generate exits through secondaries or other routes remains critical for returning capital to LPs while also supporting managers’ ability to raise new funds.”
While the industry’s largest GPs continue raising large flagship funds, the “long tail” of managers behind them are unable to keep pace. “Some are facing capital constraints as divestments have slowed and LPs demand returns,” the consultancy indicated.
