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The five shifts shaping the next phase of private markets

In a more complex and converging landscape, advantage is shifting toward those who can originate, structure and connect capital across the ecosystem.

9 July 2026

4 mins

by:

Huiting Chan Global Head, Banking Partnerships and Investments, Standard Chartered

Corporate & investment bankingFinancial institutions and investor groupsGlobal banking
Arial view of Berlin

SuperReturn International in Berlin – Global Head, Banking Partnerships and Investments, Huiting Chan, shares her perspectives on a key theme emerging from the conference.

SuperReturn International in Berlin, which brings together LPs, GPs and institutional investors from around the world, reinforced a clear message: private markets remain central to global capital allocation but the model that underpinned the last decade is changing.

This is not simply a more difficult fundraising environment. It reflects a broader transition from an era of abundance, where capital was readily available and broadly deployed, to one where discipline, selectivity and execution are becoming the true differentiators.

The implication is straightforward: Participation alone is no longer enough. The bar is rising and the sources of advantage are evolving.

We see five shifts shaping the next phase of private markets.

01

Fundraising is becoming structurally more selective

Fundraising conditions were described as among the most challenging in recent memory, with longer cycles and increased LP scrutiny. Capital is still being deployed, but it is concentrating around a smaller group of managers who can demonstrate clear differentiation, not just in track record, but in how they source opportunities and deliver repeatable returns. Others are finding that scale alone is no longer sufficient.

02

The challenge is shifting from access to navigation

Private markets continue to attract capital, but that capital comes from a broader and more diverse set of pools, including institutional investors, private wealth channels and insurance platforms. As a result, the complexity of portfolio construction is increasing, and investors are increasingly focused on outcomes such as income, growth and diversification rather than labels. There is also a renewed interest in Europe, signaling a shift in regional allocation preferences compared to previous years.

03

Private credit has become a core allocation, but dispersion within the asset class is becoming more important

In larger, more competitive segments, returns are compressing, while areas that require stronger origination and structuring capabilities continue to offer more attractive opportunities. At the same time, innovation in structures is expanding, with liquidity increasingly being engineered rather than assumed absent but it’s important to be clear that managed liquidity is not the same as instant liquidity.

04

AI is moving from narrative to reality

The initial phase was defined by optimism and capital flows; the next phase will be defined by execution. Attention is shifting from hype to application, particularly, AI as an embedded capability can drive business transformation and will shape how companies operate, scale and generate long-term value. The winners are more likely to be those who can execute better against the theme.

05

More broadly, the industry is moving from products to solutions

Traditional boundaries between private equity, private credit, infrastructure and real assets, and between public and private markets, are blurring. Capital is increasingly deployed across the capital structure, blended across markets and structured into more flexible solutions to deliver a specific outcome.

In this environment, the defining capability is connectivity. As capital becomes more diverse and opportunities more complex, value is shifting toward those who can connect the right capital to the right opportunity, in the right structure, at the right time.

Huiting Chan highlighted that it is not that capital is scarce, but that aligning capital to opportunity has become more complex.

Partnerships are increasingly the mechanism through which that alignment happens, connecting different pools of capital, structuring solutions and enabling access across an increasingly integrated market.
Profile
Huiting Chan
Global Head, Banking Partnerships and Investments

Partnerships are central to this shift

As markets converge, value is shifting toward those who can operate across ecosystems, not just within them.

Banks, in particular, are uniquely positioned – sitting at the intersection of origination, structuring and distribution – and can play a key role in connecting capital across the ecosystem.

What this means from here

The direction of travel is clear and it is more demanding.

  • From scale to true differentiation
  • From access to disciplined navigation.
  • From capital deployment to capital alignment.
  • From products to solutions and partnerships.

Private markets are not slowing but they are becoming more selective, more complex and less forgiving. In that environment, the edge will not come from simply participating. It will come from the ability to originate, structure and connect capital in ways that others cannot.

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