Private markets are entering a period of heightened scrutiny as wealthy individual investors pull back from alternative assets, prompting firms like Apollo Global Management and KKR to bolster transparency and liquidity. Fundraising into evergreen private equity and venture capital vehicles rose just 2% in the first quarter of 2026 compared with a year earlier, a sharp deceleration from the 55% growth recorded in early 2025, according to the Financial Times. Private credit saw an even steeper decline, with fundraising falling roughly 30% from both the prior quarter and the same period last year, as concerns over writedowns and redemption limits weighed on sentiment.
The pullback is a notable shift for asset managers that have invested heavily in products designed for affluent investors. Firms including Apollo, KKR, Ares Management and Blackstone have long bet that private wealth would become a major driver of future asset growth. Despite the recent slowdown, KKR's inaugural 2026 End-Investor Survey indicates that retail demand for private markets remains intact. The survey found that many individual investors are increasingly familiar with private market concepts and are open to allocating to the asset class, even as they continue to weigh concerns around liquidity, risk and access.
Apollo Explores $3 Billion BDC Sale and Daily Pricing
Against this backdrop, Apollo Global Management is in talks to sell a $3 billion private credit fund. The vehicle, MidCap Financial Investment Corporation (MFIC), is a publicly traded business development company that invests in middle-market loans. Discussions are ongoing and may not lead to a transaction. The potential sale underscores how secondary-market liquidity is becoming increasingly important as managers look for ways to reposition portfolios and meet investor demand for flexibility. For more details, see Apollo Explores $3B BDC Sale as Defaults Rise and AI Disrupts Software Loans.
At the same time, Apollo is taking steps to improve visibility into private credit valuations. The firm said it plans to provide daily pricing for its credit funds by September, a significant departure from the quarterly valuation schedules that have long been standard in private markets. "When public markets reprice, private markets should too," chief executive Marc Rowan said during the firm's earnings call. Apollo's assets under management have now surpassed $1 trillion, reinforcing the firm's position as one of the largest players in alternative investing.
KKR Downplays Market Fears, Raises $28 Billion
KKR is also pushing back against concerns that volatility in private markets reflects deeper structural issues. "The fact is, perception of the volatility of our business and industry is disconnected from the lived experience," co-chief executive Scott Nuttall said after the firm reported first-quarter results. KKR raised $28 billion during the quarter, including more than $15 billion for private credit strategies, suggesting institutional appetite remains strong despite turbulence in public markets. The firm's survey also highlights that education and advisor guidance will play a critical role in converting curiosity into actual allocations.
StepStone and PitchBook Launch Deal-Level Benchmarks
As investors demand better information, StepStone Group and PitchBook announced a partnership to provide deal-level performance and operating benchmarks across private equity, venture capital, growth equity and infrastructure. The offering will combine StepStone's SPI data platform with PitchBook's research and analytics tools to give users more detailed insight into value creation and underlying drivers of returns. "Private markets investors are demanding greater transparency and more sophisticated analytics to navigate an increasingly complex landscape," said Tyler Johnson, Partner and Chief Technology Officer at StepStone Group. The product is expected to be available in the second quarter of 2026. This initiative aligns with broader regulatory trends; see SEC and Global Regulators Intensify Scrutiny of $2 Trillion Private Credit Market.
Separately, technology upgrades are enhancing private credit analytics. BlackRock Aladdin and RedBlack recently launched upgrades that integrate with CAIS, providing advisors with better tools for evaluating alternative investments. For more on this, see BlackRock Aladdin and RedBlack Launch Alts Upgrades: Private Credit Analytics and CAIS Integration.
Taken together, these developments suggest private markets are entering a new phase in which fundraising growth can no longer be taken for granted and managers must provide investors with more frequent valuations, deeper data and greater liquidity options. While large firms continue to attract institutional capital, the retail pullback is forcing the industry to prove that private market products can deliver both performance and transparency in more volatile conditions.
