Equipped for Changing Terrain

AI’s Supercycle Reshaping Private Equity and Venture Capital

Artificial intelligence (AI) is defining where value is created and captured, giving private market investors earlier access to innovation and growth. AI is simultaneously fueling innovation, new company formation, and value creation while also redefining how venture capital and private equity operate, positioning both for sustained growth and competitive advantage. For investors, private equity offers a compelling opportunity to access this growth, providing earlier exposure to AI-driven change, stronger return potential, and diversification beyond public markets.

Position portfolios at the forefront of AI’s earliest growth phases.

AI-Related VC Deal Activity Surging

Sources: PitchBook. Geography: Global. As of December 31, 2025.

Infrastructure and the Energy Transition

AI’s fast-growing computing needs are driving a major infrastructure buildout, from data centers to power generation. Despite these compelling tailwinds, infrastructure remains underrepresented in most portfolios, presenting an attractive entry point for investors seeking inflation mitigation, long-duration assets, and exposure to AI’s growing role in improving resource efficiency and supporting sustainable growth.

Access durable infrastructure opportunities fueled by AI expansion.

AI Is Driving an Unprecedented Data Center Construction Boom

Sources: Strategas. Data as of October 31, 2025.

Engineered for Distance

Private credit’s advantages—higher, often floating-rate yields, lower volatility, and strong investor risk mitigation—continue to reinforce its role as a resilient, all weather core allocation. With strong fundamentals, expanding opportunity sets, and durable income characteristics, the asset class deserves a growing role in modern portfolio construction.

Discover private credit’s growing role in modern portfolio construction.

Private Credit Assets Under Management to Double by 2030

Source: Preqin. AUM figures exclude funds denominated in yuan renminbi. Values relate to end of year. The degree of incline for the annualized growth line is not proportional to the rate of growth. To avoid double-counting, total column excludes funds of funds. Total includes business development companies but excludes all other semi-liquid funds.

The Distressed Credit Advantage

Distressed private credit offers an attractive risk/reward profile, supported by persistent corporate stress and discounted entry points. As macro pressures intensify and credit secondaries expand, investors can tap a growing opportunity set that can enhance returns while preserving the defensive strengths of secured private credit.

Invest where market stress reshapes valuations.

Late-Stage Credit Cycles Driving Deep Value Opportunities

Source: PitchBook. Data as of February 28, 2026.

Shock Absorbers for Bumpy Patches

Hedge funds are increasingly functioning as essential stabilizers, delivering uncorrelated returns and meaningful risk mitigation when traditional allocations face stress. Their ability to adapt, innovate, and calibrate risk in real time positions them as core portfolio tools for navigating a volatile macro regime.

Improve portfolio efficiency across market environments.

Stability During Market Stress

Source: Preqin, State of Hedge Fund Reports, 2025.