On Investors’ Minds - APAC Edition Market Outlook 2026: Alternatives and overall asset allocation - what's in it for investors?
Dec 23, 2025
In this discussion, Kerry Craig, a Global Market Strategist at J.P. Morgan Asset Management, shares insights on private equity and market strategies for 2026. He discusses easing concerns surrounding private equity valuations due to rising exit opportunities. Kerry also delves into the growing private equity secondaries market and highlights private credit as an income source. Additionally, he reveals how investors can gain AI exposure through infrastructure investments and emphasizes the importance of discipline and risk management in asset allocation.
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Private Equity Pressure Has Eased
- Private equity concerns eased as M&A, IPOs and exits picked up in the second half of the year.
- Falling U.S. interest rates and expectations of lower rates support private equity valuations and activity.
Secondaries Provide Liquidity And Discounts
- The private equity secondary market has grown rapidly as investors seek liquidity when primary exits stall.
- Secondaries often trade at discounts and reduce the J-curve by buying later-stage stakes.
Private Credit: Income With More Scrutiny
- Private credit remains attractive for higher income but requires greater diligence due to rapid growth and competitive underwriting.
- Recent high-profile defaults were in levered loans, not the core private credit market, though stresses are rising.