KKR

Please enter your business email. Please enter a valid email address. Please enter a professional email address. Recent headlines can paint a bleak picture for private equity: limited deal flow, fierce competition, stretched valuations, and scarce exits. AI disruption and geopolitical uncertainty have only heightened investor unease and confusion. Amid this noise, many investors are caught between competing narratives, unsure whether to commit capital or wait for clarity.

Please enter your business email. Please enter a valid email address. Please enter a professional email address. The Asia liquid credit market has fundamentally transformed. It is now predominantly investment grade (IG), sovereign-anchored, and developed-market in character. What was once considered an emerging markets allocation is no longer your grandmother’s EM. We believe Asia liquid credit has outgrown that bucket.

Please enter your business email. Please enter a valid email address. Please enter a professional email address. At KKR, our 2026 Mid-Year Outlook reaches a clear conclusion: the cycle continues, but the rules of the game are changing. The global economy is moving from a low-cost, efficiency-first model towards one where redundancy, reliability, resilience, and control carry a higher premium.

Please enter your business email. Please enter a valid email address. Please enter a professional email address. We have always viewed sustainability as a lever for protecting our clients’ capital and creating value over time. As our platform continues to grow, in early 2026, I was asked by the partnership to take on an expanded role as KKR’s Head of Sustainability, while continuing to serve as Global Co-Head of our Climate Transition strategy.

Please enter your business email. Please enter a valid email address. Please enter a professional email address. Fed Chair Kevin Warsh concluded his inaugural FOMC meeting and delivered his first press conference on Wednesday. The Dot Plots dismissal, the installation of task forces to review Fed procedures, and his overall comments all tilted more hawkish, which will likely create more bond market uncertainty in the near-term.

Solvency II: Where the Real Change is Happening In October 2025, the European Commission finalized long-anticipated amendments to Solvency II, with implementation expected by January 2027. While presented as a technical recalibration of capital rules, the reform is more consequential than it may first appear — repricing regulatory capital and reshaping relative value across asset classes.

References to “we”, “us,” and “our” refer to Mr. McVey and/or KKR’s Global Macro and Asset Allocation team, as context requires, and not of KKR. The views expressed reflect the current views of Mr. McVey as of the date hereof and neither Mr. McVey nor KKR undertakes to advise you of any changes in the views expressed herein. Opinions or statements regarding financial market trends are based on current market conditions and are subject to change without notice.

Please enter your business email. Please enter a valid email address. Please enter a professional email address. This quarter, we drew inspiration from the Roman arena to explore a dynamic we believe is reminiscent of today’s credit market: the tension between fundamentals and the perception of them. In ancient Rome, the arena was rarely short of noise. The crowd roared loudest for the spectacle, but not usually for the disciplined gladiator who had the experience to survive.

Please enter your business email. Please enter a valid email address. Please enter a professional email address. A set of structural forces, such as the energy transition, workforce dynamics, and supply chain resilience, continue to shape how companies manage risk and create long-term value. These trends are not new. What has changed is the context in which they are playing out.

A lot of capital, much of it through the wealth channel, has flowed toward what has been most visible, most accessible, and most immediately rewarding, particularly direct lending. Strong income, stable performance, and growing investor access have drawn significant flows into areas that appear to deliver both yield and consistency. The crowd, in effect, is cheering.