MSCI Inc has unveiled its inaugural State of Private Markets 2026 report, described as a comprehensive analysis of the current investment landscape and the structural shifts reshaping private markets as the asset class expands across institutional and wealth portfolios.
Private markets are entering a new phase of maturity, marked by rising demand for transparency, persistent liquidity constraints and a growing need to evaluate investments within a total-portfolio framework, according to the first edition of what will be an annual report. While long-term performance remains a core attraction, data transparency, valuation practices and reporting standards have lagged behind the rapid growth in capital.
“The asset class works, but the infrastructure supporting it has not kept pace with its scale,” says Luke Flemmer, Head of Private Assets at MSCI. “Liquidity pressure, uneven confidence in marks and recent stress in private credit are all rooted in a structural lack of transparency. Investors need to know what they own, what those investments are worth and where risk lies to successfully manage public and private assets together.”
The report highlights emerging stress in private credit as a focal point for concern: Semi-liquid structures, which offer periodic redemptions based on manager-reported valuations, are placing greater scrutiny on the accuracy and timeliness of those valuations. At the same time, there are more signs of borrower strain, particularly among smaller funds.
In private equity, the report identifies a continued slowdown in exits and distributions that is contributing to a more challenging fundraising environment as well as a growing reliance on secondary markets and continuation vehicles to generate liquidity.
The rapid build-out of artificial intelligence infrastructure is creating significant investment opportunities across private markets, according to the report. From data centres to software and energy systems, AI-related investments are cutting across asset classes, reinforcing the need for more granular, integrated analysis of portfolio exposures.
The report also examines the rise of evergreen fund structures, which are expanding access to private markets but introducing new complexities around liquidity management and valuation integrity. As these vehicles grow, investor expectations shaped by public markets are increasingly colliding with the realities of private-market investing.
“MSCI is committed to building the essential infrastructure of private markets that will enable the industry to scale. Our focus is on providing the data, analytics and tools that help investors see their exposures clearly and make more informed decisions across their entire portfolio,” Flemmer adds.
