Wealth managers in the US are increasingly using evergreen fund structures to provide clients with access to private markets, according to a report by With Intelligence. The report highlights the growing importance of private credit, private equity and real estate investment trusts in wealth management portfolios.

BlackRock's HPS Investment Partners is poised to introduce a set of private markets funds geared toward retail investors, potentially including strategies in junior debt, real assets and triple-net-lease real estate assets. BlackRock also has rolled out the iShares Systematic Alternatives Active ETF, a multiasset liquid alternatives exchange-traded fund with investments in areas including credit, equities and diversified bonds.

Blackstone CEO Stephen Schwarzman said three recent high-profile bankruptcies in the auto industry were blamed on private credit even though, "in fact, all three deals were due diligence by banks, underwritten by banks, syndicated by banks, and private credit was sort of not in the room." He noted private credit's stronger leverage position compared with banks, adding, "Private credit is actually much more conservative for the system."

Private credit defaults in the US are projected to decline in 2026, with Bank of America forecasting a drop in the default rate to 4.5% from 5% in 2025. This improvement is attributed to expected interest-rate cuts by the Federal Reserve, which should ease repayment pressures for borrowers. However, BofA says the sector faces challenges due to opaque lending structures and involvement with vulnerable industries.

Private credit is increasingly mirroring the public bond market as rapid growth pushes the asset class into areas once dominated by high-yield bonds and leveraged loans. Assets under management are projected to reach $5 trillion by 2029, and lenders now offer private versions of nearly every major fixed-income segment. Experts say the convergence is driven by banks pulling back, borrowers seeking bespoke financing, and investors chasing yield. They warn that rising competition could pressure underwriting standards, increasing risks around leverage, liquidity, and potential market stress.

Alexander & Baldwin, Hawaii's largest owner of grocery-anchored shopping centers, will be acquired by a joint venture that includes Blackstone's real estate business as well as MW Group and DivcoWest. The enterprise value of the deal is about $2.3 billion when including debt, and it could be finalized in the first quarter of next year. "For 155 years, A&B has grown alongside Hawaii, shaped by the people, values and communities that define these islands," said Alexander & Baldwin CEO and President Lance Parker.

Blue Owl Capital reported $1.7 billion in fundraising for Blue Owl Digital Infrastructure Trust, a nontraded REIT that has purchased interests in 11 US data centers in a transaction valued at around $1.5 billion net of assumed debt. Blue Owl also pledged $2.5 billion to Palo Alto, Calif.-based Point, a home equity investment company, to aid in originating up to $10 billion in financing in the coming three years.

Hines Global Income Trust acquired an open-air shopping center in Carmel, Ind., for $199 million. The property, known as Clay Terrace, encompasses 493,000 square feet. Hines also acquired Left Bank, a multifamily tower in Chicago's West Loop, bringing the total value of acquisitions to more than $350 million.

The Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency have rolled back 2013 guidance on leveraged lending, allowing banks more discretion in risk assessment. The move aims to level the playing field between banks and the rapidly growing private credit industry, which has thrived under the previous restrictions.

The Federal Reserve's quarter-percentage-point interest-rate cut this week faced significant internal resistance, with three dissenting votes and four officials quietly objecting by projecting higher rates for 2025. President Donald Trump criticized the cut as insufficient and expressed a desire for lower rates, posing a challenge for Powell's successor. The Fed's decision reflects a split between officials concerned about a weakening labor market and those wary of cutting rates in an economy they think is stronger than it appears.