Key Takeaways
- • Goldman Sachs CEO David Solomon said sponsor share of announced M&A remains below historical averages year to date, while Goldman reported a record $1.65bn in advisory fees for Q3, up 18% YoY.
- • BlackRock reported quarterly net inflows into private markets of $15.3bn, with infrastructure ($7.6bn) and private credit ($5bn) leading and private equity receiving only $710m.
- • EQT booked €10.9bn of net inflows into its key funds, but €10.3bn came from its acquisition of secondaries investor Coller Capital, underscoring weak organic private equity fundraising.
- • Man Group's private markets holdings were flat, with total AUM edging down from $17.6bn to $17.4bn, despite $1.9bn of net alternative inflows driven by liquid assets.
- • Executives flagged AI infrastructure capex, with Morgan Stanley's Ted Pick putting hyperscaler capex at $1tn, while CoreWeave's bonds fell to distressed levels amid an AI stock selloff.
Summary
The start of Q3 2026 earnings season showed strong results for Wall Street but muted performance in private markets, according to coverage of the reporting period. Goldman Sachs CEO David Solomon said on the earnings call that "Year to date, sponsor share of announced M&A remains below historical averages." Goldman reported a record $1.65bn in advisory fees, up 18% YoY. Solomon said more private equity activity had been expected by now as firms look to exit older vintages, but did not view renewed rate rises as a significant headwind. He argued the bigger constraint is that many assets remain marked above levels at which they can be monetized, and that sponsors are waiting longer because of the incentive structure.
Limited returns of capital from GPs are weighing on fundraising. LPs are reluctant to make further private equity commitments and are favouring infrastructure and private credit. This was visible at BlackRock, which reported quarterly net private markets inflows of $15.3bn: $7.6bn into infrastructure, $5bn into private credit, $1.9bn into real estate and $710m into private equity.
EQT, the first major private equity firm to report, recorded €10.9bn of net inflows into its key funds, though €10.3bn of that came from its acquisition of secondaries investor Coller Capital. EQT also reported €3bn of exit volume, which it attributed to a "seasonally slow quarter for deal activity", up from about €2bn a year earlier. The firm recently agreed to acquire US real estate manager Stockbridge for up to $550m. At Man Group, net alternative inflows of $1.9bn were driven by liquid assets, while its private markets holding was flat and total AUM edged down from $17.6bn to $17.4bn.
Asset managers continue to expand alternatives platforms. Wells Fargo reported a more than 30% year-to-date increase in alternative product offerings on its platform. State Street CEO Ron O'Hanley said alternative servicing fees grew at "a double-digit rate" YoY, and the bank plans a tokenised fund servicing capability by end-2026, though it is unclear whether private markets will be included.
Private credit remained a focus. Solomon said that despite "noise in the media", institutional allocators have viewed the present as a more attractive time in the last three to six months to deploy capital with experienced managers. On AI infrastructure, Morgan Stanley's Ted Pick put hyperscaler capex at $1tn, potentially sustainable over five to ten years, and Charlie Scharf described AI infrastructure as one of the "strong positive forces" in the economy. Solomon warned higher rates could erode project returns, and Scharf flagged risks from significant leverage financing the buildout. CoreWeave, which has relied heavily on private credit financing, saw its bonds fall to distressed levels amid an AI stock selloff, highlighting how shocks can pass between public and private markets given private capital's deep commitment to the AI buildout.
Limited returns of capital from GPs are weighing on fundraising. LPs are reluctant to make further private equity commitments and are favouring infrastructure and private credit. This was visible at BlackRock, which reported quarterly net private markets inflows of $15.3bn: $7.6bn into infrastructure, $5bn into private credit, $1.9bn into real estate and $710m into private equity.
EQT, the first major private equity firm to report, recorded €10.9bn of net inflows into its key funds, though €10.3bn of that came from its acquisition of secondaries investor Coller Capital. EQT also reported €3bn of exit volume, which it attributed to a "seasonally slow quarter for deal activity", up from about €2bn a year earlier. The firm recently agreed to acquire US real estate manager Stockbridge for up to $550m. At Man Group, net alternative inflows of $1.9bn were driven by liquid assets, while its private markets holding was flat and total AUM edged down from $17.6bn to $17.4bn.
Asset managers continue to expand alternatives platforms. Wells Fargo reported a more than 30% year-to-date increase in alternative product offerings on its platform. State Street CEO Ron O'Hanley said alternative servicing fees grew at "a double-digit rate" YoY, and the bank plans a tokenised fund servicing capability by end-2026, though it is unclear whether private markets will be included.
Private credit remained a focus. Solomon said that despite "noise in the media", institutional allocators have viewed the present as a more attractive time in the last three to six months to deploy capital with experienced managers. On AI infrastructure, Morgan Stanley's Ted Pick put hyperscaler capex at $1tn, potentially sustainable over five to ten years, and Charlie Scharf described AI infrastructure as one of the "strong positive forces" in the economy. Solomon warned higher rates could erode project returns, and Scharf flagged risks from significant leverage financing the buildout. CoreWeave, which has relied heavily on private credit financing, saw its bonds fall to distressed levels amid an AI stock selloff, highlighting how shocks can pass between public and private markets given private capital's deep commitment to the AI buildout.
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