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J.P. Morgan's 2026 Global Alternatives Outlook

J.P. Morgan Asset Management has recently unveiled its eighth annual Global Alternatives Outlook, shedding light on various investment opportunities within the private markets as we navigate the rising influences of AI on global finance. The report aims to provide investors with a comprehensive 12-to-18 month forecast across critical alternative asset classes, encouraging tailored investment strategies. As pivotal companies retain their private status for extended periods, the report identifies private markets as a robust and diversified investment avenue, outlining the immense opportunities that lie ahead.

Insights from J.P. Morgan Leaders

J.P. Morgan's Global Head of Private Markets, Jed Laskowitz, emphasizes the complexity of the current market. He states, "As many leading companies are staying private for longer, the private markets are deep and diverse, and the opportunity for investors is immense. Our 2026 Global Alternatives Outlook leverages our more than 60-year track record investing in nearly every facet of private markets to help investors understand the opportunities, manage the risks, and build more resilient portfolios."

From a practical standpoint, Anton Pil, Global Head of Alternatives Solutions, notes the significant economic trends we’re witnessing, particularly the fading of hyper-globalization, the upsurge in global AI investments, and evolving stock-bond correlations. This changing landscape positions private markets as increasingly vital components in portfolio diversification through tangible assets while providing investors broader access to the driving forces of this structural evolution via private equity and private credit.

Key Trends Revealed in 2026 Outlook

The report uncovers significant themes across various asset classes that investors should be aware of:

Global Real Estate

• - The commercial real estate sector is on the verge of recovery, backed by anticipated rate reductions and limited supply alongside consistent economic growth.
• - Nationalism is influencing an uptick in demand for industrial spaces, where power availability is now crucial for site selection.
• - The residential sector remains structurally undersupplied, which bolsters performance in single-family rentals, attainable multifamily housing, and flexible living arrangements.

Infrastructure

• - A notable acceleration in capital expenditures in core infrastructure is anticipated, driven by increasing energy demand, security necessities, and the energy transition.
• - Utilities that are vertically integrated stand in a promising position to capitalize on growth while preserving defensive characteristics.

Transportation

• - The industry is experiencing a remarkable asset replacement cycle as a result of aging fleets converging with heightened global trade volumes.
• - Demand for energy-efficient transportation assets is strong, even though manufacturing capacity constraints yield a favorable supply-demand imbalance for lessors.

Timberland

• - Timberland investments are attractive for their steady cash flows, inflation protection, and potential long-term capital appreciation as trade dynamics shift and timberland values increase.
• - Housing construction in regions such as the US and Australia is being revitalized due to lower interest rates, which correlate with rising lumber demand.

Hedge Funds

• - The macro shifts evident today—including elevated volatility and interest rates—favor a more tactical approach, leaning towards managers adept in relative value and statistical arbitrage strategies.

Private Equity

• - The private equity landscape is robust as we approach 2026, with an improved environment emerging for small and mid-market investments as market conditions stabilize.

Private Credit

• - The growing secondary market in private credit is reshaping terms, risks, and liquidity features, presenting noteworthy premium benefits compared to public credit.

Overall, J.P. Morgan Asset Management stands as a leader in alternative investments, benefiting from over six decades of experience and managing an extensive portfolio valued at $600 billion across various sectors including real estate, private equity, infrastructure, and hedge funds. As investors consider their next moves, the perspectives and forecasts elucidated in this report are indispensable for navigating the complexities of the investment landscape shaped by the burgeoning AI era.

For a complete overview of the 2026 Global Alternatives Outlook, visit J.P. Morgan Asset Management's website.