Key Takeaways
- • Private markets have grown to an estimated USD 20 trillion, a dramatic increase from a decade ago, as companies remain private longer and access expands beyond traditional institutional investors.
- • Retail investors and retirement systems are increasingly gaining access to private markets through regulatory changes enabling alternatives in 401(k) plans and pension fund commitments to domestic businesses and infrastructure.
- • A once-in-a-generation capital expenditure cycle driven by AI and public-private market convergence is reshaping the global economy, with OECD energy demand projected to rise 2–4% annually, driving major infrastructure investment as capex outpaces asset depreciation for the first time in 100 years.
- • USD 1.2 trillion in U.S. public construction funded by the Infrastructure Investment and Jobs Act is expected to boost real estate recovery and private development.
- • Private equity deal volume reached USD 1.3 trillion, underscoring the scale and momentum of alternative investment activity as public and private markets increasingly intersect.
Summary
The alternative investments landscape is entering a pivotal phase characterized by unprecedented convergence between public and private markets. EisnerAmper's Alternative Investments Outlook identifies a once-in-a-generation capital expenditure cycle, driven by artificial intelligence adoption and the structural shift toward public-private market integration, as a defining feature reshaping the global economy through 2026.
Private markets have undergone a dramatic transformation in scale and accessibility. The sector is now valued at approximately USD 20 trillion, representing substantial growth from decade-ago valuations. This expansion has been enabled not only by the depth and liquidity now available in private capital markets, but also by a fundamental shift in the investor base. Traditionally, demand for private assets was concentrated among institutional investors and ultra-high-net-worth individuals. Today, retail investors and retirement systems worldwide are gaining meaningful participation in private markets through regulatory accommodations, including the expansion of alternative investment options within 401(k) retirement plans and significant pension fund allocations to domestic businesses and infrastructure projects.
Infrastructure investment is accelerating as a core component of this cycle. OECD energy demand is projected to rise between 2% and 4% annually, driving major capital expenditure as capex spending outpaces asset depreciation for the first time in a century. Within the United States specifically, USD 1.2 trillion in public construction initiatives stemming from the Infrastructure Investment and Jobs Act are expected to catalyze real estate recovery and support private development opportunities. Private equity activity reflects this momentum, with deal volume reaching USD 1.3 trillion, demonstrating the substantial scale and velocity of alternative investment deployment.
The strategic imperative for investors is to identify opportunities at the intersection of public and private markets, where EisnerAmper positions the most compelling investment prospects for the coming period. As part of J.P. Morgan Asset Management, the firm emphasizes leveraging global perspective and deep industry expertise to navigate this hybrid investment environment.
Private markets have undergone a dramatic transformation in scale and accessibility. The sector is now valued at approximately USD 20 trillion, representing substantial growth from decade-ago valuations. This expansion has been enabled not only by the depth and liquidity now available in private capital markets, but also by a fundamental shift in the investor base. Traditionally, demand for private assets was concentrated among institutional investors and ultra-high-net-worth individuals. Today, retail investors and retirement systems worldwide are gaining meaningful participation in private markets through regulatory accommodations, including the expansion of alternative investment options within 401(k) retirement plans and significant pension fund allocations to domestic businesses and infrastructure projects.
Infrastructure investment is accelerating as a core component of this cycle. OECD energy demand is projected to rise between 2% and 4% annually, driving major capital expenditure as capex spending outpaces asset depreciation for the first time in a century. Within the United States specifically, USD 1.2 trillion in public construction initiatives stemming from the Infrastructure Investment and Jobs Act are expected to catalyze real estate recovery and support private development opportunities. Private equity activity reflects this momentum, with deal volume reaching USD 1.3 trillion, demonstrating the substantial scale and velocity of alternative investment deployment.
The strategic imperative for investors is to identify opportunities at the intersection of public and private markets, where EisnerAmper positions the most compelling investment prospects for the coming period. As part of J.P. Morgan Asset Management, the firm emphasizes leveraging global perspective and deep industry expertise to navigate this hybrid investment environment.
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