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I caught up yesterday with my colleague Laura Kreutzer, the private-equity bureau chief at WSJ Pro, to talk about some of the biggest trends that promise to shape decision-making in 2026.
During a webinar to talk about the challenges facing top executives, the WSJ Leadership Institute’s CFO Journal covered many of the highlights so far this year, particularly the concerns over geopolitical risk and AI investments. Laura shared some highlights from the PE world’s perspective.
Laura said that geopolitical uncertainty and risk, particularly as it relates to the U.S. and Europe, were focal points for private investors. She said the uncertainty has not put the industry in any kind of full-blown panic—at least not yet. She added that private equity is a long-term illiquid asset class and firms have gotten used to navigating geopolitical uncertainty, particularly following the “Liberation Day” tariff announcements last spring. Her other responses have been edited for clarity.
WSJLI: And what are you hearing about AI in the PE community?
Laura: AI, including the global race for adoption and the debate over a potential valuation bubble for AI companies, has been top of mind for private equity and venture investors. The larger private-equity firms have devoted considerable resources to incorporating machine learning and AI into their investment and portfolio management processes for a while now.
WSJLI: Interest rates and debt availability also have significant implications for private markets investors. Where do you see the biggest impact?
Laura: In the private-equity world, falling rates have actually helped revive leveraged loan markets, bringing banks back to the table, and that’s bolstered large M&A transactions and large private-equity deals. Global private-equity deal activity and value were up significantly over last year’s levels.
WSJLI: We’ve seen a fair bit of discussion about the rebound in private-equity deal activity this year, but what about fundraising?
Laura: There’s an interesting divide between fundraising activity and dealmaking. While we have seen deal and exit volume grow noticeably last year, fundraising remained muted and is probably likely to continue to be lackluster this year.
✏️ Share your thoughts. What are the most important trends for 2026 for C-suite leaders and investors? Hit Reply to this newsletter to share your feedback.
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