KKR and UBS views on public and private markets
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Solita Marcelli, Global Head of Investment Management at UBS GWM, & Henry McVey, Head of Global Macro and Asset Allocation, and CIO of KKR’s Balance Sheet, share their views on the rest of 2026 and beyond, exploring key opportunities and risks across public and private markets. T
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4 itemsKKR and UBS views on public and private markets
The desk underscores a cautious yet strategic outlook on portfolio management heading into 2026, as highlighted by KKR and UBS's recent discussions on 'high grading' investment strategies. Per the full note from UBS, both firms emphasize the need for investors to upgrade their portfolios in a context where macroeconomic growth expectations have escalated to 16% for the S&P, above the historical average of 11%. This cautious optimism arises as notable risks loom, particularly with anticipated increases in credit defaults amid a backdrop of rising interest rates. As we chart our strategy for this environment, it’s crucial to monitor how these evolving dynamics could shift risk sentiment in FX markets moving forward.
Top of the Morning: What role can private assets play in a portfolio?
The commentary from UBS highlights the increasing significance of private assets in long-term investment strategies, particularly focusing on private equity, private credit, real estate, and hedge funds. Per the full note, the ongoing shift towards these asset classes reflects a broader search for yield in a low-rate environment, with private markets presenting opportunities for attractive returns. Notably, UBS's Private Markets Strategist Jennifer Liu emphasized that private equity returns have historically outpaced public markets, making them an appealing option for portfolio diversification. As institutional investors seek to hedge against volatility, the push for private investments appears to solidify into 2024, suggesting a continued trend toward illiquid asset classes over the coming planning horizon.
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