The report gives an insight into how sophisticated institutional and wealth investors are interpreting ongoing geopolitical, economic, and market uncertainty.
bfinance, the award-winning specialist investment consultancy, has published its Q1 2026 Manager Intelligence and Market Trends Report, providing comprehensive insights into investor activity across all major asset classes during the first quarter of 2026.
The report gives an insight into how sophisticated institutional and wealth investors are interpreting ongoing geopolitical, economic, and market uncertainty. Private markets were in focus amid a broad slowdown in fundraising, led by private credit and real estate. The market slowdown did not, however, translate into a broad slowdown in bfinance private markets activity.
Private markets: infrastructure activity bucks industry slowdown
Infrastructure accounted for more than a quarter (27%) of bfinance private markets activity for the trailing 12-month period to end March 2026, extending a consistent uptrend over the past year. Real estate activity held up, maintaining a near-quarter share (24%) of mandates, in contrast to a tough industry backdrop. Fundraising in the real estate sector effectively stalled in Europe and only a handful of US focused funds closed above the $1 billion mark amid heightened geopolitical uncertainty.
Real asset activity (real estate, infrastructure and natural capital) proved resilient, accounting for more than half of all bfinance private markets activity. For more on the infrastructure trends see: Global Infrastructure Survey – Three Takeaways as Broad Enthusiasm Gives Way to Selectivity and Precision[1].
Our private debt activity proved less resilient to the headwinds, weighed down by negative news around a so-called “SaaS apocalypse” and widely reported redemptions from semi-liquid funds.
Search activity trended lower to just over a quarter (27%) of private markets mandates from 35% in 2025. For disciplined managers, periods like this can support better pricing and, often, stronger lender protections and tighter documentation.
Investment strategy: Rethinking currency and portfolio construction
There are many evolving strategic questions facing institutional allocators. The Iran conflict accelerated a reassessment of US dollar exposure as a new ‘multi-polar’ world order emerges. Greater fragmentation, with multiple currencies sharing influence over time, reinforces the case for currency overlays, as reflected in ongoing bfinance search activity for such strategies in our liquid alternatives business (see below).
Liquid alternatives: Continued strong interest, particularly in wealth segment
There was continuing client interest in currency overlay strategies, consistent with the idea that asset allocators may need to rethink currency risk, and gradual portfolio diversification away from dollar assets. Our diversifying strategies business (public market, or ‘liquid’ alternatives) also saw continuing momentum across multiple hedge fund investment styles and custom multi-asset strategies. For more on the renewed interest in liquid alternatives see: Hedge Funds: Are Push and Pull Dynamics Coming into Rare Alignment?[2]
Equities: Emerging markets and demand for differentiated returns
Emerging markets strategies dominated equity activity, accounting for approximately 38% of mandates, versus 24% the prior year. Global equity remained the largest single category at 54%, though down from 60% the prior year. The majority of global equity mandates were core, benchmarkrelative searches, though a handful incorporated style-specific angles – including AI equity, value, and impact strategies – pointing to selective demand for differentiated return sources.
Fixed income: Search for diversification and strong interest in high yield
Despite tight credit spreads there was a significant increase in high yield and loan-related searches, which accounted for 38% of fixed income search activity. Investors have been willing to reassess their manager line-ups, while also allocating new capital to the asset class to capture the higher yield on offer. Multisector and non-traditional fixed income strategies featured prominently in search activity as investors sought diversification.
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