New York Life Investment Management Outlook Finds Private Markets Remain Resilient as Greater Dispersion Raises the Bar for Investors

NEW YORK--(BUSINESS WIRE)--New York Life Investment Management (NYLIM) today announced the publication of its private markets outlook for the second half of 2026, “Resilience in an Evolving Landscape: Growth persists as outcomes diverge.” The research finds that private markets remain supported by resilient economic fundamentals and powerful structural trends, even as elevated rates, geopolitical uncertainty and widening dispersion create a more selective investment environment.

The long-term forces supporting private markets remain intact: companies are staying private for longer, public markets are increasingly concentrated, investor access is broadening, and technological innovation is creating a wave of capital-intensive investment. At the same time, greater dispersion across sectors, borrowers and managers is raising the importance of manager selection, disciplined underwriting and thoughtful portfolio construction.

“The opportunity in private markets is increasingly about where and how investors put capital to work,” said Sarah Hirsch, Global Market Strategist at NYLIM. “As dispersion widens, we believe manager selection and disciplined execution will play a greater role in driving outcomes. At the same time, evolving sources of liquidity and powerful structural investment needs are creating new opportunities across private markets.”

AI is creating new demand for private capital

Artificial intelligence remains one of the most important forces shaping investment and economic growth. Meeting AI-driven demand will require substantial investment not only in data centers, but also in the power generation, transmission networks and digital connectivity that underpin the technology.

The outlook estimates a $2.9 trillion global data center buildout from 2025 through 2028, creating significant financing needs and potential opportunities for private credit and other forms of private capital.

“We are seeing firsthand that the AI infrastructure opportunity extends well beyond the data center. Investment in compute is driving demand for power generation, transmission, storage and connectivity, while significant investment is still needed across traditional utilities, transportation and energy infrastructure. That breadth is creating compelling opportunities for long-term investors across the capital stack,” said Meaghan Black, Managing Director, Private Fixed Income at New York Life Investment Management.

A more selective environment across private markets

Across asset classes, NYLIM sees resilience alongside greater differentiation:

• Private equity: NYLIM continues to favor the middle and lower middle market, where a broader buyer universe, more attractive entry points and greater pricing flexibility may create opportunities. As holding periods lengthen, secondaries are also playing a growing role in providing liquidity, with volumes reaching a record $121 billion in the first half of 2026.
  
  
• Private credit: Elevated base rates continue to support income generation, while placing greater pressure on more leveraged and lower-quality borrowers. NYLIM believes the next phase will increasingly reward borrower selection, leverage discipline and experienced managers.
  
  
• Real estate and infrastructure: NYLIM favors real estate sectors supported by durable tenant demand and structural trends, while AI, electrification, energy security and digitalization are creating growing investment needs across infrastructure equity and debt.

For investors, NYLIM identifies three considerations for the next phase of private markets: greater selectivity as dispersion widens; thoughtful liquidity management as holding periods and distributions evolve; and a focus on structural demand and durable cash flow. NYLIM believes success in this more differentiated environment will increasingly depend on disciplined implementation and execution.

The full H2 2026 Private Markets Outlook, “Resilience in an Evolving Landscape,” is available here.

About New York Life Investment Management

With approximately $837.6 billion* in assets under management as of June 30, 2026, New York Life Investment Management is a Pensions & Investments' Top 30 Largest Money Manager** and one of the largest active asset managers globally, with leading positions across both public and private markets. Comprised of the affiliated global asset management businesses of New York Life Insurance Company, New York Life Investment Management is committed to achieving enduring financial outcomes and building long-term partnerships across market cycles and generations. Our specialized, independent investment teams bring disciplined active management and deep expertise to help clients navigate the next era of investing.

“New York Life Investment Management” is the brand name and service mark used to represent a group of affiliated investment advisers of New York Life Insurance Company: Andera Partners, Apogem Capital LLC, Ausbil Investment Management Limited, Bow River Asset Management, LLC, Candriam S.C.A., Kartesia Management S.à r.l., MacKay Shields LLC, New York Life Investment Management LLC, NYL Investors LLC, and Tristan Capital Partners LLP.

*Assets under management (AUM) includes assets of the investment advisers that make up “New York Life Investment Management” as of 6/30/2026. AUM includes certain assets, such as nondiscretionary AUM, external fund selection, and overlay services, including ESG screening services, advisory consulting services, white labeling services, and model portfolio delivery services, that are not necessarily considered Regulatory Assets Under Management according to the SEC’s Form ADV. AUM is reported in USD. AUM not denominated in USD is converted at the spot rate as of 6/30/2026.

The total AUM figure for “New York Life Investment Management,” as a brand, is less than the sum of the AUM of each affiliated investment adviser in the group because it does not count AUM where the same assets can be counted by more than one affiliated investment adviser. In addition, AUM includes assets of certain, but not all, investment advisers affiliated with New York Life Insurance Company and excludes assets managed by Andera Partners and Bow River Asset Management, LLC. AUM is based on estimates and is subject to change.

**New York Life Investment Management ranked 26th largest institutional investment manager in Pensions & Investments' Largest Money Managers 2026 published June 2026, based on worldwide institutional AUM as of Dec. 31, 2025. No direct or indirect compensation was paid for the creation and distribution of this ranking.