Elaine Chim on private markets and efficiency in 2026
Looking ahead to 2026, we’re seeing some clear trends: liquid alternatives and the retailisation of private markets are really gaining momentum. There’s a big push for efficiency, with clients turning to technology and AI to cut costs and scale up. Private credit, evergreen funds, and hybrid structures are hot topics. Plus, outsourcing and smart tech partnerships are now essential, as AI changes everything from picking investments to streamlining operations.
Trends to build on in 2026
Two major trends have stood out in 2025: the rise of liquid alternatives and the retailisation of private markets. Institutional allocations to alternatives continue to grow, and the sector is becoming more accessible to high-net-worth individuals and retail investors through innovative fund structures and investment platforms. Private credit, real estate, and infrastructure remain key client segments, and we're seeing notable growth in evergreen and semi-liquid vehicles.
Additionally, clients are extremely focused on cutting costs. They are leveraging technology, demanding more from their service providers, and seeking ways to scale their operations efficiently.
Growing demand for operational efficiency and flexibility
We’ve seen a significant uptick in demand for retail transfer agency (“TA”) and standalone TA services, as well as private credit fund administration. There’s also been more interest in lift-out conversations and evergreen vehicles, especially evergreen credit. Asset allocator services, particularly for large pension funds, have also become increasingly popular. These trends are driven by clients wanting greater operational efficiency and the ability to offer more flexible investment structures to their end investors.
Trends shaping client priorities in 2026
Our clients’ priorities will continue to align with the trends I mentioned earlier, but there’s a growing emphasis on the impact of new technology and AI solutions to further improve operations in day-to-day work, areas where we excel as leaders in this space. Another major focus is scaling operations across data, operations, risk, and monitoring, so outsourcing partnerships and technology investments are becoming even more critical. I also anticipate that lift-out discussions will continue to be a trend. Additionally, the increased prevalence of fund structures that provide liquidity options is blurring the lines between traditional and alternative asset managers. We’re seeing hybrid products and evergreen vehicles that combine public and private portfolios.
The growing importance of AI to stay ahead
The impact will be transformational across the entire lifecycle of the alternatives industry. For investment selection, AI tools can help scan for suitable portfolio company targets by performing analysis on vast amounts of information and performing complex investigations that would be impossible manually. In fund operations, AI is already replacing high-volume, low-risk tasks with minimal human intervention, as seen in our use of Graphite for transfer agency services. AI also enables ongoing monitoring, such as identifying covenant breaches, tracking KPIs, and providing real-time alerts for irregular activity, as well as automating valuation updates. Going forward, managers will need to either leverage their own AI tools or work closely with vendors who are already leading in this space to stay ahead of the curve.
