Private Markets Enter 2026 on Firmer Footing as Deal Activity Rebounds, New York Life Investment Management Finds

NEW YORK--(BUSINESS WIRE)--Private markets entered 2026 on firmer footing, as deal activity rebounds and supportive financial conditions help to extend the cycle, according to New York Life Investment Management’s 2026 Private Markets Outlook, “Extending the cycle: growth and opportunity across private markets.”

“Private markets are regaining momentum. Easy financial conditions are reviving deal activity, even as elevated long-term rates enforce discipline. That gives the cycle room to run, but it also makes selectivity more important.”

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The outlook finds that private markets activity is improving, with opportunity increasingly driven by selectivity and diversification, as investors lean into more complex and fragmented markets to unlock differentiated sources of return.

Supportive backdrop fuels private markets activity

“Private markets are regaining momentum,” said Sarah Hirsch, Global Market Strategist at New York Life Investment Management. “Easy financial conditions are reviving deal activity, even as elevated long-term rates enforce discipline. That gives the cycle room to run, but it also makes selectivity more important.”

As lower short-term rates improve confidence and liquidity, global policy support and resilient economic growth – bolstered by AI spending – create a constructive backdrop across private equity, private credit, real estate, and real assets.

The credit cycle is maturing, but fundamentals remain solid

As the credit cycle matures, the report finds that private credit fundamentals remain well supported. Corporate liquidity is healthy, defaults remain low, and defensive capital structures continue to underpin private credit deployment, particularly in the middle market.

Private markets poised to benefit from global megatrends

The outlook underscores that global megatrends are increasingly emerging as powerful drivers of private markets opportunity.

“Private markets will play a central role in financing the buildout of global megatrends,” said Lauren Goodwin, Economist and Chief Market Strategist at New York Life Investment Management. “AI is a clear example. Private markets are well-suited to provide the long-term funding and strategic partnerships required to support AI investment needs over the coming years.”

The report is available for download here. For more information on the team, please visit (https://www.nylim.com/global-markets).

About New York Life Investment Management

With approximately $807.7 billion* in assets under management as of Dec. 31, 2025, 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.

* Assets under management (AUM) includes assets of the investment advisers that make up “New York Life Investment Management” as of Dec. 31, 2025. AUM includes certain assets, such as non-discretionary 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 Dec. 31, 2025. The total AUM figure of “New York Life Investment Management” 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.

** New York Life Investment Management ranked 28th largest institutional investment manager in Pensions & Investments' Largest Money Managers 2025 published June 2025, based on worldwide institutional AUM as of Dec. 31, 2024. No direct or indirect compensation was paid for the creation and distribution of this ranking.