“Our first-half results demonstrate that the strategic measures taken over the past two years are translating into better commercial results and a stronger financial performance,” stated Albert Saporta, CEO of GAM Group, following the presentation of the first-half results for the year.
According to the published figures, the pre-tax loss under IFRS narrowed by 39% to CHF 24.7 million (H1 2025: CHF 40.4 million). “The first-half loss was materially reduced due to a leaner operating model and strict cost discipline,” the asset manager explained.
Most notably, assets under management rose to CHF 12.7 billion as of June 30, 2026, up from CHF 12.5 billion recorded on December 31, 2025. Additionally, gross capital inflows reached CHF 900 million, with a strong focus on alternative investments. “GAM’s transformation is beginning to bear fruit: assets under management are increasing thanks to solid gross capital inflows and improved performance, while client redemptions have decreased substantially,” they stated.
“We generated nearly CHF 1 billion in gross inflows and, excluding the redemption of a single segregated account by a client undergoing a post-merger restructuring, underlying net flows were positive. Assets under management increased, investment performance remained strong, and our loss was significantly reduced, driven by a 17% reduction in operating expenses compared to the first half of 2025. We remain focused on our priorities: delivering strong investment performance for our clients, growing assets through disciplined distribution, continuing to enhance operational excellence, and maintaining strict cost discipline,” Saporta noted.
When highlighting key financial metrics, the asset manager also emphasized that its investment performance strengthened during the first six months of the year. “96% of applicable AuM in alternatives and 84% of applicable AuM in fixed income outperformed their respective three-year benchmarks. Over five years, the corresponding figures were 85% and 91%, respectively. Overall, across all of our business lines, 64% of applicable AuM outperformed its three-year benchmark and 58% outperformed its five-year benchmark as of June 30, 2026, compared to 61% and 54% as of December 31, 2025,” they highlighted.
Strategic Vision and Transformation
Following the transformation program launched by GAM two years ago, the Group now combines a lower cost base and a simplified operational structure with an expanded range of differentiated investment capabilities. According to the company, its model brings together specialized in-house teams and selected strategic investment alliances, providing multiple avenues for organic growth moving forward without proportionally increasing the Group’s fixed cost base.
In this regard, it continued to simplify its operational structure while maintaining its partnerships with Swiss Re ILS and Gramercy Emerging Market Debt, which completed their first full year during this period and are now fully integrated within GAM. “Establishing a longer real track record expands eligibility for due diligence processes and mandate selections by institutional investors, which will drive future distribution opportunities,” they noted.
During the first half, GAM continued to reinforce its commercial capabilities through its operating model and an integrated data architecture, enabling greater use of data, artificial intelligence, and specialized market intelligence across marketing, distribution, and client service. These capabilities support more effective digital distribution, deeper client engagement, improved product positioning, and the identification of institutional opportunities. The company also bolstered its distribution talent across Europe and Asia by adding senior client-facing personnel in Germany, Italy, Iberia, and Japan, further strengthening local coverage in its core markets.
A key highlight of the six-month period was its alternatives business. The Alternative Investments division generated the majority of gross inflows during the period. The GAM Swiss Re Cat Bond UCITS Fund closed the reporting period with nearly USD 2 billion in assets, supported by continued client demand alongside improved valuation and trading conditions. Additionally, the GAM LSA Private Shares strategy surpassed USD 250 million in assets, while the emerging market debt range expanded through the alliance with Gramercy.
Finally, GAM continued to develop its Specialist Active offering across equities, fixed income, and multi-asset investments, including active special situations strategies. During this period, the GAM Sustainable Emerging Markets Equity strategy exceeded USD 250 million in assets, while the European equity team established a one-year investment track record at GAM, laying an important foundation for future institutional distribution.
Photo courtesyAna Luisa Ramírez, Senior Director of Distribution at FDS Partners
In a decision aimed at reinforcing the capabilities of distribution firm FDS Partners in the Latin American and US Offshore markets, the company announced the addition of Ana Ramírez and Mercedes Delclaux Squella to its ranks, alongside the arrival of Patricia Beans as an advisor to the board. With their combined capabilities in institutional distribution, corporate finance, financial analysis, and asset management, the company stated in a press release that it anticipates strengthening its coverage and strategic expansion in the region.
Ramírez joined as Senior Director of Wealth Management for the US Offshore business, after five years at the Chilean financial group Bci. “With great enthusiasm, I begin a new challenge at FDS Partners, where I hope to continue deepening my knowledge of the Miami market, continue learning, and contribute all my experience to this new project,” the professional wrote in a LinkedIn post about the move.
Prior to her appointment, Ramírez served as Head of Institutional Distribution at Bci. This role led her to relocate to Miami two years ago, where she is currently based.
In her two-decade career, according to her profile, the professional also worked as Institutional Distribution Manager at Ameris Capital and spent nearly 11 years at LarrainVial. There, she reached the position of Discretionary Portfolio and APV Manager. In addition, she was an Investment Strategy Analyst at Compass Group (currently Vinci Compass) at the beginning of her career.
FDS highlights Ramírez’s experience leading regional commercial strategies, structuring investment platforms, and negotiating distribution agreements with global managers. “Ana’s institutional expertise and long-standing relationships across Latin America make her an exceptional addition to our team,” said Lars Jensen, Managing Partner of the firm, in the press release.
Delclaux complements the strengthening of the team dedicated to the region, joining as Sales Associate for US Offshore. The professional brings experience in corporate loans, financial analysis, and asset management in Latin American and U.S. markets. Previously, she worked at Banco Sabadell Miami.
“Mercedes brings a valuable combination of analytical rigor and commercial drive,” Jensen added, noting that her capabilities will help support clients in private and institutional banking channels.
In addition to these appointments, FDS reported that they recruited Patricia Beans as an Advisory Board Member and independent counselor for the firm.
With forty years of experience in the global financial services industry in hand, the professional leads the consultancy she founded, Beans Consulting Services LLC. This firm is dedicated to advising organizations regarding client strategies, business transformation, and execution.
Jensen described her arrival at FDS as “invaluable” for the firm and highlighted the professional’s “experience leading global transformation initiatives and her expertise in governance matters.”
Family offices are steadily increasing their focus on cryptocurrencies and digital assets as part of their investment strategies. This is according to a study conducted by Ocorian among business family members and senior family office executives across 16 countries, who collectively manage $119.37 billion in wealth.
According to the research, 86% of respondents are taking steps to incorporate these types of assets into their portfolios. However, the rollout of these strategies is being conditioned by growing regulatory demands and the difficulty of finding specialized providers capable of responding to the compliance and reporting obligations associated with this asset class.
Regulation: The Main Obstacle Moving Forward
The report highlights that 70% of family offices considering investments in cryptocurrencies and digital assets face difficulties accessing external services to help them manage regulatory compliance and reporting obligations. Only 30% consider this aspect not to be an issue.
The lack of specialized support comes within a broader challenge related to increasing global regulatory complexity. Barely 8% of family offices consider themselves “very well prepared” to face global regulatory requirements, while 74% state they are in a “fairly solid” position, though acknowledging that the regulatory landscape demands constant adaptability. Furthermore, 18% rate their level of preparedness as merely “average,” underscoring the need to strengthen specialized support.
Industry Demands More Specialized Advisory Services
Rebecca Thorpe, Global Head of Regulatory Consulting at Ocorian, points out that family offices are incorporating digital assets at a rapid pace, but warns that “the complex and rapidly shifting regulatory and reporting obligations attached to these assets cannot be ignored.”
In her view, regulators are struggling to keep pace with market innovation, and traditional service providers do not always possess the capacity required to support this evolution. Consequently, finding agile, specialized advice has become one of the primary hurdles for high-net-worth investors seeking to capitalize on the opportunities offered by digital assets.
The study concludes that as the market for cryptocurrencies and other digital assets matures, the availability of regulatory compliance solutions will be a key factor in accelerating their adoption into family office investment portfolios.
Photo courtesyA.J. Harper (left), Managing Partner and Co-Founder of inCadense; and Francisco Rosemberg (right), Managing Director and Head of Wealth and Family Capital for Latin America at BlackRock
Amid the evolution of the fee-based model in Latin American and US Offshore markets, wealth management technology company inCadense and American asset manager BlackRock announced a partnership aimed at accelerating the transition toward more scalable, transparent, and portfolio-centric advisory models in the region.
According to executives Francisco Rosemberg, Managing Director and Head of Wealth and Family Capital for Latin America at BlackRock, and A.J. Harper, Managing Partner and Co-Founder of inCadense, in an interview with Funds Society, the strategy consists of combining the global asset manager’s investment expertise with the technology company’s infrastructure.
In this partnership, inCadense brings its Unified Managed Account (UMA) structure—which enables bundling multiple investment strategies within a single account—along with its iTAMP, created to allow advisors and managers to deploy international managed accounts without needing to build the entire operational setup from scratch.
“The migration toward fee-based models, the growth of managed accounts, and the demand for more sophisticated investment solutions do not happen overnight. What we have observed is that the demand already exists, both in Latin America and in offshore markets,” says BlackRock’s Rosemberg. “What was missing was the infrastructure to connect advisors, solutions, and clients. That is exactly what this partnership seeks to do: bridge that gap and accelerate that transformation.”
The executives also highlighted the growth of fee-based models in Latin America, where penetration still hovers around 10% to 12% in domestic markets, compared to 53% in the United States and 42% in Europe (according to Cerulli data).
“The demand already exists. The challenge is eliminating complexity so that advisors can offer holistic solutions to their clients. That is precisely why we developed this infrastructure,” says Harper, from inCadense.
They also discussed the expansion of managed accounts in the United States, which currently manage $16.4 trillion in assets and continue to record strong growth, alongside the evolution of fee-based portfolios—moving beyond simple ETF allocations to incorporate mutual funds and alternative assets, such as private credit, private equity, and real estate.
For both executives, the primary barrier to this transformation was never investor demand, but rather the lack of a technological infrastructure capable of connecting advisors, custodians, and asset managers across different markets and jurisdictions.
Why did BlackRock and inCadense decide to form this partnership?
Francisco Rosemberg (BlackRock):
“We are observing wealth managers across Latin America and in offshore markets evolving toward fee-based advisory models. These models are more scalable, more transparent, and ultimately designed to deliver better outcomes for clients.
BlackRock’s role in this partnership is to provide investment capabilities, portfolio construction expertise, and support advisors in transitioning from a transactional model toward a long-term wealth consultancy model.
inCadense complements that effort by offering technological infrastructure. Its Unified Managed Account (UMA) and Separately Managed Account (SMA) capabilities simplify portfolio implementation across different jurisdictions, custodians, and currencies.
We believe this collaboration will help reduce much of the operational friction that historically hindered the adoption of fee-based models in the region. Ultimately, it is a model that offers greater cost transparency, strengthens advisor-client alignment, and transforms the role of the advisor—who stops acting as a product distributor to focus instead on financial planning, portfolio construction, wealth management, and long-term advice.”
A.J. Harper (inCadense):
“The biggest challenge was never demand. The challenge was always infrastructure. When the industry shifts away from distributing standardized products, such as mutual funds, toward delivering complete portfolio solutions, overall operational complexity increases significantly.
Investors want customization. They want a portfolio built specifically for them, not a one-size-fits-all product. Until today, many advisors simply lacked access to the technology required to deliver that experience.
It was precisely to solve that problem that we created the iTAMP (International Turnkey Asset Management Platform). Our platform connects advisors to multiple custodians, execution platforms, and operational workflows within a single infrastructure designed specifically for the international market.
Our goal is to remove day-to-day operational complexity for advisors so they can dedicate their time to client relationships rather than account reconciliations, rebalancing, trade execution, or administrative processes.”
What is a Unified Managed Account (UMA)?
A.J. Harper:
“A UMA allows the advisor to build a single, integrated portfolio using multiple investment strategies simultaneously. Within the same account, it is possible to combine ETFs, fixed income, equities, SMAs, private investments, and alternative strategies.
Each of those strategies can be managed by specialized teams, while the overall portfolio remains coordinated according to the client’s risk profile and goals. Instead of selling individual products, the advisor delivers a comprehensive investment solution.”
Why is this movement happening right now?
Francisco Rosemberg:
“We believe Latin America is reaching a pivotal inflection point. Fee-based models are already well established in mature markets. Today, approximately 53% (according to Cerulli data) of assets managed in the United States follow this model. In Europe, market share hovers around 42%. In offshore markets, we estimate penetration close to 35%, up from nearly 20% just over five years ago.
In Latin America, however, we are still at an early stage. Across the entire region, we estimate penetration at around 20%, while in domestic markets that percentage still sits around 10% to 12%. That illustrates the size of the opportunity.
The demand is already there. Virtually every conversation we have with wealth managers trends in the same direction: they want to migrate toward portfolio-centric models and long-term advisory.
What was missing was the technological infrastructure to make that transition viable. That is precisely what this partnership intends to offer.”
How does Latin America differ from the United States in this regard?
A.J. Harper:
“The United States built an exceptional infrastructure for managed accounts. But it was designed specifically for the American domestic market.
The international advisor operates in a completely different reality. They handle multiple currencies, varying jurisdictions, numerous custodians, and very distinct regulatory environments.
Our role is to bring the US managed accounts experience to Latin America, but tailored to the specific needs of international markets. That is what makes our platform a genuinely international solution.”
Who will be able to use this platform?
A.J. Harper:
“There are different user profiles. The first group consists of advisors affiliated with large wealth management institutions. These firms can integrate their existing infrastructure with the iTAMP and deploy the platform to their advisors.
We also serve independent RIAs, external asset managers, family offices, and multi-family offices. These institutions typically already work with one or more custodians.
Our platform integrates directly into the operational environments they already use. We are not asking them to change their infrastructure; we connect directly to how they already operate.”
Which countries are leading the adoption of fee-based models?
Francisco Rosemberg:
“We are seeing progress across the entire region. Brazil and Mexico are among the markets accelerating this transformation the fastest, although adoption is growing across virtually all of Latin America.
Infrastructure remains one of the main hurdles. When we look at our own ETF franchise, we see this exact trend. Between 2018 and 2021, only 3% of flows into BlackRock’s iShares franchise came from model portfolios. Over the last two and a half years, that share has increased to approximately 15%.
When we expand that analysis to include model portfolios managed by wealth managers overall—not just BlackRock models—we estimate that roughly 30% of ETF utilization is now tied to model portfolios. That demonstrates how adoption accelerates once the proper infrastructure becomes available.”
How do you view the evolution of fee-based advisory in the region?
Francisco Rosemberg:
“Initially, much of the market focused on ETF-only models. But we believe that is only the first stage. Portfolios will evolve to incorporate a much broader range of solutions, including ETFs, mutual funds, SMAs, active ETFs, and alternative investments.
Today, nearly 70% of model portfolio providers already offer—or plan to offer—exposure to private markets, primarily private credit, private equity, and private real estate, typically through interval funds.
We believe Latin America will follow a similar trajectory as its infrastructure matures.”
Can the US market serve as a benchmark for this movement?
Francisco Rosemberg:
“Without a doubt. Today, the US managed accounts industry oversees approximately $16.4 trillion in assets. In 2025 alone, that market grew 19.1%, outperforming even the S&P 500 during that period, and attracted $1.08 trillion in net inflows
In the first quarter of 2026, even as the S&P 500 declined by 4.3%, managed accounts continued to attract capital, gathering approximately $388 billion in net inflows. Projections indicate this market could reach around $21.8 trillion by 2028, growing at an annual rate close to 12%.
This shows that the transformation is driven not merely by market performance, but primarily by a structural shift in how advisors serve their clients.”
A.J. Harper:
“For many years, it was relatively easy for advisors to distribute financial products. Deploying customized portfolios, however, required an extremely complex operational setup.
Our goal is to make portfolio implementation as simple as selling a mutual fund used to be. Technology should sit in the background. Advisors should spend their time with clients; we take care of the infrastructure.”
Sovereign wealth funds (SWFs) have become one of the most powerful and least visible employers in global finance. These state-owned vehicles collectively manage more than $12 trillion in assets, investing in equities, bonds, infrastructure, real estate, private equity, and private credit across every continent, while offering careers that combine institutional investing with a geopolitical dimension that is hard to find in the private sector.
The guide “Sovereign Wealth Fund Jobs 2026: Roles, Salaries & How to Get Hired” reveals a highly selective labor market where professionals with experience in investment banking, private equity, or institutional management can access compensation packages that reach up to $600,000 per year.
The Sovereign Wealth Fund Club
Sovereign wealth funds operate under low visibility, but that does not mean they lack relevance; quite the contrary. At the top of the sector sits Norway’s Government Pension Fund Global, the largest sovereign wealth fund in the world with over $2.1 trillion in assets and equity stakes in more than 9,000 companies across 70 countries. It is followed by giants such as China Investment Corporation, Abu Dhabi Investment Authority (ADIA), Kuwait Investment Authority, and Hong Kong’s Exchange Fund.
The ranking also includes major Gulf players like Mubadala Investment Company, ADQ, Investment Corporation of Dubai, and Dubai Investment Fund, as well as Asia-Pacific institutions like Korea Investment Corporation and Australia’s Future Fund.
How Much Does a Sovereign Wealth Fund Pay?
The main difference compared to other institutional investors lies in the combination of competitive salary, stability, and global exposure. According to the guide, investment positions are broken down into three main levels:
Analyst / Associate: Annual salary ranging between $120,000 and $250,000.
Investment Officer / Portfolio Manager: Annual salary ranging between $200,000 and $600,000.
Director / Senior Investment Professional: Annual salary of $500,000 or more.
The $200,000 to $600,000 range for an Investment Officer or Portfolio Manager represents the study’s most significant data point, placing sovereign wealth funds in direct competition for specialized talent against private equity firms and hedge funds.
These compensation packages have consolidated and increased to such an extent that they are now as competitive as those offered by major Wall Street firms—and in many cases superior—without factoring in additional perks provided by these funds, particularly regarding job security.
Who Pays the Most?
Although funds rarely publish full salary structures, the market identifies clear regional differences, summarized below based on key insights from the report:
Gulf Funds (ADIA, Mubadala, ADQ, ICD):
The most aggressive compensation packages in the market.
High salaries, competitive bonuses, and tax advantages in several jurisdictions.
A strong focus on direct investments and private markets.
Norway (Government Pension Fund Global):
Solid compensation, though generally less aggressive than Gulf funds.
Institutional prestige and exposure to one of the largest portfolios on the planet.
Strong emphasis on governance and long-term management.
Singapore (GIC and Temasek, though Temasek operates under a distinct corporate structure):
Competitive packages with a strong professional development component.
Greater openness to junior profiles compared to other sovereign funds.
Focus on training and international rotation.
The guide highlights that Gulf funds have intensified international hiring to reinforce teams in private equity, infrastructure, technology, and private credit, putting upward pressure on compensation.
The New Star Profile: Direct Investment
The traditional portfolio manager role is evolving. Today, sovereign wealth funds seek professionals capable of deal sourcing, leading co-investments, and executing direct investments, particularly in private assets.
Areas in highest demand include private equity, infrastructure, real estate, private credit, technology, artificial intelligence, and energy transition. This shift explains why many funds are recruiting talent directly from Blackstone, KKR, Apollo, Brookfield, and other alternative asset managers.
However, unlike major investment banks, most sovereign wealth funds do not engage in mass campus hiring for university graduates. The most common path involves building prior experience in investment banking, private equity, equity research, or asset management before transitioning into the sovereign sector.
Mergers & Inquisitions
The most notable exceptions are select graduate development programs at GIC and Temasek, which maintain training schemes for high-potential junior profiles.
Beyond salary, sovereign funds offer three advantages that are difficult to replicate:
Long-Term Investment Horizon: They are not subject to quarterly public market pressures.
Access to Large-Scale Deals: They participate in major acquisitions, strategic infrastructure, and national-level projects.
Job Stability: State backing reduces the volatility characteristic of other financial segments.
The Key Takeaway for Latin America
For Latin American wealth management, asset management, and investment banking professionals, the message is clear: sovereign wealth funds are establishing themselves as direct competitors for specialized talent. The growth of private markets and the expansion of Gulf investment vehicles are creating opportunities for profiles with experience in deal structuring, sector analysis, and alternative asset management.
At a time when major global asset managers are also reinforcing their distribution and private markets teams, SWFs add an extra dimension: the ability to manage capital at a scale that transcends financial return and directly intersects with state economic strategy.
In other words, the appeal is no longer just how much they pay, but the magnitude of the decisions they enable you to make. In that domain, few employers in the financial world can compete with those who manage the savings of entire nations.
Banco Santander, S.A. (Santander) and Webster Financial Corporation (Webster) have announced that they have received approval from the United States Federal Reserve for Santander’s acquisition of Webster, announced last February.
Webster is the parent company of Webster Bank, N.A., an American retail and commercial bank. This authorization comes after that granted by the Office of the Comptroller of the Currency (OCC), the United States banking regulatory agency, on June 12, 2026, and that of the European Central Bank, received on July 21, 2026. The transaction is expected to close on August 20, 2026.
This is what Ana Botín, Executive Chair of Santander, noted: “Santander US and Webster are a perfect fit. Together, with the support of Santander’s global platforms, technology, and experience, we will create a stronger bank with the scale necessary to offer a better service to our clients and the communities in which we operate. This combination will reinforce our position in one of the most attractive banking markets in the world and puts us in a privileged position to build one of the best-performing banks among our competitors in the United States.”
For her part, Christiana Riley, CEO and General Manager of Santander Holdings USA, Inc., points out: “We are pleased to be one step closer to completing this important strategic acquisition, which will improve our scale and complete our business model in the United States. The integration of two such complementary businesses will allow Santander to offer a better service to individual and corporate clients, and will contribute to the development of local communities. We look forward with enthusiasm to this new stage for Santander.”
“This is a very important milestone that will allow us to join our two organizations very soon for the benefit of our clients and the communities in which we operate. Santander’s greater scale, improved capabilities, and financial strength will help us strengthen our relationships with local communities and improve the trust that Webster’s clients have placed in us,” points out John Ciulla, Chairman and CEO of Webster.
The transaction is expected to reinforce Santander’s business in the United States and accelerate the fulfillment of its financial goals. Once the integration is completed, Santander foresees that market reaching a return on tangible equity (RoTE) of around 18% in 2028. Likewise, the operation is estimated to generate an increase in earnings per share of around 7% or 8%, as well as a return on invested capital close to 15%, also for 2028.
Upon completion of the transaction, most of Webster’s businesses will integrate into Santander Bank, N.A., Santander’s banking entity in the United States. Until the closing, Santander and Webster will continue to operate independently. Clients do not need to do anything at this time: their accounts, products, and services will continue to operate normally. Any future changes will be communicated far enough in advance before taking effect.
Photo courtesyThomas Friedberger, Deputy CEO and Co-CIO of Tikehau Capital
“It is time to be patriotic about Europe and defend our economic and social model. You can invest in crypto assets or structured products, but that contributes nothing to the real economy. Financing European companies, injecting them with the capital they need to build resilience and sovereignty, is something European investors should actively embrace.”
These are the words of Thomas Friedberger, Deputy CEO and Co-CIO of Tikehau Capital. During a recent visit to Madrid, Friedberger detailed Tikehau’s commitment to long-term investment themes in European assets across public and private strategies. He outlined a macroeconomic landscape where the primary engines driving growth over recent years are handing over the baton to brand-new dynamics.
In recent times, we have had to live with higher levels of volatility and uncertainty. What is your core macroeconomic scenario?
Our conviction since the end of the COVID crisis is that we are entering a world of lower growth because future growth will be far less optimized. For years, there was tremendous visibility surrounding globalization and the trajectory of interest rates, which allowed companies to optimize numerous operational facets—from capital structures to supply chains. However, that optimization turned into a vulnerability during COVID and subsequent geopolitical tensions.
What the world needs now is to build resilience rather than efficiency, and that comes at a cost. Resilience requires heavy capital expenditures (capex), maintaining larger inventories, operating with higher capital buffers, and purchasing hedges against climate and cyber risks. Consequently, I believe corporate profit margins will face ongoing pressure on both revenue and cost fronts.
Furthermore, this lower growth will be accompanied by higher inflation. Deglobalization is inherently inflationary because those heavy capital investments are partially financed through public debt and massive fiscal expansion. Moreover, while artificial intelligence was expected to exert deflationary pressures, it is currently proving to be inflationary: it is driving up prices for semiconductors and electricity. Shifts in Asian currencies also play a role—for years, weak currencies contained global inflation, but the renminbi’s appreciation could generate renewed inflationary pressure. My point is that it is not just the energy crisis driving inflation. The last time we saw a setup like this was in the 1970s.
How can investors fortify their portfolios to navigate these risks?
In a world where interest rates no longer fulfill their traditional role of shielding investors, risk assets face mounting pressure. It is a very complex environment because investors have virtually nowhere to hide. Historical market leaders argued that the only way to navigate such a scenario was to invest with a sufficient margin of safety to absorb potential hits to operational earnings from lower growth and higher inflation.
Yet, if you look at market behavior today, you see the exact opposite. Capital is flowing into assets at sky-high valuations—not just in AI, but also in fixed income, where credit spreads in certain segments are extremely tight. At Tikehau Capital, we remain committed to maintaining strict discipline and avoiding FOMO, even when challenging. Because we co-invest our own balance sheet capital alongside our shareholders and LPs, we are the first to feel the impact of investment missteps. This is why we are deploying capital with extreme prudence, particularly in private credit.
Are you conscious that your stance sounds extremely contrarian?
Yes, but that does not concern me. If the broader market simply follows the crowd, I am comfortable being a contrarian. We believe growth will persist, but it will be far more concentrated than before. Previously, growth was consumption-driven; moving forward, it will be driven by capital expenditure as the imperative shifts toward building resilience.
When growth relies on consumption, nearly every sector benefits. When it depends on capex, only the specific sectors receiving those capital infusions stand to win. The ultimate winners in this environment are the four ‘Ds’: defense, deglobalization, digitalization, and decarbonization. That is precisely why we concentrate our private equity investments on those sectors and the solution providers enabling them.
What happens then to economies like the United States, where consumption accounts for nearly 70% of GDP?
The United States remains heavily reliant on consumption, driven largely by the wealth effect generated by AI. Currently, consumer spending is no longer backed by wage growth; roughly 1.5% of US GDP is tied directly to AI investments, and another 1.5% stems from the wealth effect of retail investors purchasing shares in Nvidia and similar mega-caps. In short, the economy is deeply dependent on artificial intelligence—if this AI investment cycle pauses, major vulnerabilities will emerge.
Another critical factor: over the past decade, high visibility favored asset-light business models designed to return massive amounts of cash to shareholders. Today, the dynamic has reversed; companies require heavy liquidity to fund capex programs. We have seen Google execute the largest debt offering in its history, and SpaceX prepare a massive bond issuance shortly after its public market moves. Ultimately, this capital investment cycle is being funded by leverage. In fact, hyperscalers are currently among the largest issuers in the Investment Grade bond market.
How are you approaching AI as an investment theme?
We are keenly interested in artificial intelligence, but we approach it through a contrarian lens. We focus on financing data centers and the broader electrification value chain—such as companies improving power grid efficiency and end-user electrification—rather than investing directly in AI pure-plays at demanding valuations.
The niche opportunity we have identified centers on funding the early construction phase of data centers: facilities that have already secured power supply and municipal permits. We take on the construction and commercialization risk to capture double-digit returns. We favor this strategy because once constructed and leased, traditional banks move aggressively to refinance the asset. This shortens the investment duration, yielding equity-like returns far faster than usual.
Conversely, we remain hesitant to maintain long-term equity ownership of data centers, as we believe the market severely underestimates the risk of technological obsolescence.
What other long-term investment themes are you developing at Tikehau?
Closely tied to artificial intelligence is decarbonization. I firmly believe that decarbonization is the greatest investment opportunity of our generation.
Looking at IPCC data, achieving Paris Agreement goals requires a collective global investment of roughly $6 trillion annually in decarbonization. 80% of that capital must target transforming existing systems—industry, agriculture, buildings, and transportation—while only 20% should go toward speculative early-stage tech venture capital. The core imperative is transforming legacy infrastructure.
Over the last 12 years, we have built deep expertise investing in electrification solution providers. The only way forward is to electrify the end consumer, which is impossible without a dramatically more efficient power grid. These are low-tech-intensity businesses, yet they are highly profitable and scaling rapidly. We currently manage the largest European private equity fund dedicated to electrification.
Why do you view decarbonization as the most attractive long-term investment opportunity?
Prior to recent geopolitical tensions, decarbonization was viewed as desirable, but carried the stigma that extra-financial returns came at the expense of financial performance. Today, that narrative has completely flipped: geopolitical crises have proved that decarbonization is fundamental to strategic sovereignty.
In Europe, this means breaking reliance on foreign fossil fuels. In China, it reduces dependence on the US dollar for crude oil purchases. Furthermore, if the United States wants to preserve its global leadership in artificial intelligence, it must aggressively decarbonize its energy grid, as scaling emission-free power generation is the only way to solve current electricity bottlenecks.
Yet that appears to clash with political messaging in certain regions…
In practice, Texas is already the largest producer of renewable energy in the United States. Between 2024 and 2025, 94% of new utility-scale power capacity installed across the country was renewable energy. The structural momentum is already underway.
The consequence is that Europe finds itself leading a global movement for once, buoyed by stringent regulatory standards. European solution providers in decarbonization—companies specializing in energy efficiency, resilient supply chains, and industrial processes—have matured rapidly. These are the exact companies Tikehau Capital has backed for over a decade, and we are witnessing their rapid international expansion. This reinforces my conviction: decarbonization is the single greatest investment opportunity of our generation.
In a context where exits from private equity assets continue to show a complex landscape and appetite for the asset class remains bright, it is no surprise that continuation funds are establishing themselves as a popular liquidity solution in the market.
From being a fringe solution a decade ago, these vehicles have become a more everyday proposition, increasingly popular among asset managers and investors alike. And the figures reflect an expanding market.
Data from Preqin show that continuation funds went from 13 vehicles, with $9 billion in assets in 2018, to 123 closed vehicles globally last year, totaling $75 billion.
One of the ingredients behind this growing popularity is related to liquidity dynamics within the private equity market, which continue to evolve. “While exit activity has improved, driven by some large transactions, overall distribution remains below the historical norm and many investors continue to seek new ways to achieve liquidity solutions,” Schroders noted in a recent report.
Looking ahead, expectations are for momentum to continue, considering that this type of fund is becoming increasingly attractive to GPs.
Growing Interest
A survey conducted by Bain & Company earlier this year showed that 27% of the asset managers surveyed had initiated or completed a continuation vehicle transaction in the last 24 months.
Of this total, 22% involved a single-asset deal, 3% involved multi-asset strategies, and the remaining 2% used a mix of single-asset and multi-asset investments.
Projecting into the future, expectations are even more dynamic. Four out of ten GPs expect to explore one of these transactions within the next one to two years. 24% anticipate making single-asset investments, 5% multi-asset investments, and 11% both.
The drive behind this interest, as outlined in the Bain survey, lies in the search for liquidity. When asked about the strategic reasoning behind continuation deals—both executed and projected—53% pointed to providing liquidity for existing LPs.
The other priorities highlighted were acquiring more capital to use in add-on M&A (42% of respondents) and resetting investment horizons for assets that require a longer holding period (33%).
“It is clear that continuation vehicles are becoming an established part of the liquidity toolkit. Beyond delivering capital to LPs, many GPs are using them to refinance assets and fund mergers and acquisitions for ‘buy-and-build’ strategies,” the consulting firm concluded in its report.
The Importance of the Secondary Market
The boom in continuation vehicles has reinforced the importance of secondary markets. According to Schroders, both LP-driven portfolio sales and continuation investments continue to grow, to the point that 2026 is shaping up to be a new record year for capital raising.
“Continuation investments in particular are becoming an increasingly established feature of the private equity ecosystem. While they continue to benefit from cyclical liquidity needs, our analysis shows that their growth is largely structural, reflecting their ability to retain ownership of high-quality assets with greater upside potential while providing optional liquidity to existing investors,” the firm stated in its report.
All in all, this phenomenon has left its mark on the secondary market. Figures from specialized advisory firm Evercore Private Capital Advisory show that transaction volume in the first half of 2026 exceeded $120 billion.
This represents a 20% increase compared to June 2025 and positions it as the strongest first half on record. Furthermore, they emphasized that these data consolidate the strong results of last year, when annual volume grew by 40% to $226 billion.
It is worth noting that, of the total capital accumulated in secondary transactions this year, the largest share comes from GP-led activity, at $65 billion. In contrast, LP-driven transactions totaled $56 billion.
“Single-asset continuation vehicles represented the largest share of GP-driven activity, concentrated in high-quality assets,” Evercore emphasized in its report.
Photo courtesyDiana Rueda, Director and Market Leader at BlackRock
Deepening her 17-year career in the financial industry, Diana Rueda has joined BlackRock, where she will be based out of Miami. Coming from MFS Investment Management after an eight-year tenure, she steps into the role of Director and Market Leader at the world’s largest asset manager.
According to market sources, her new responsibilities will focus heavily on the Miami wealth management ecosystem—a hub renowned for its strong concentration of Latin American investors. Her primary mandate will center on servicing wirehouses alongside select independent advisory accounts.
Prior to joining BlackRock, Rueda held progressive roles at MFS Investment Management between July 2018 and her recent departure, starting as a Senior Sales Representative before rising to Senior Regional Consultant.
Earlier in her career, she built extensive institutional experience in Colombia, serving as a Sales Trader at BBVA Colombia, Director of International Investments at Alianza Valores SCB, and a Foreign Associate at Citi.
Allfunds closed the first half of the year achieving a 21.3% year-over-year growth in its assets under administration. According to its financial figures, platform services reached €1.3 trillion, representing a 23% annual increase, supported by net flows of €51.1 billion during the first six months of the year.
“Having completed the review of our business lines, we are now focused on the disciplined execution of our key strategic priorities: accelerating growth in alternative assets and ETFs, and advancing innovation in tokenization. This renewed focus is yielding strong results, with a 21% growth in assets under administration to €1.9 trillion and a 10% increase in revenue for the half-year. This performance demonstrates the continued commitment of our clients and our ability to translate market opportunities into concrete results,” highlighted Annabel Spring, CEO of Allfunds.
Momentum in Alternatives and Commercial Activity
One of the most significant growth areas recorded by the firm during the first six months of the year corresponds to its alternative asset solutions. Assets under administration within this segment expanded by 54.4% year-over-year, reaching €41.4 billion. Furthermore, distribution in alternative products surged 62% compared to the same period last year, while the number of managers hosted on its alternatives platform grew 32.5% annually to reach 253 entities. Specifically, the firm onboarded 46 new distributors and 94 asset managers during the half-year period.
