Sonali Basak, Chief Investment Strategist for iCapital, joined Julie Cooling, Founder and CEO of RIA Channel, at iCapital Connect 2026 to discuss how advisors are navigating market uncertainty and rethinking expectations in private credit.
As the market grapples with the conflict in Iran and a spike in energy prices, Basak notes that market impacts will depend on the length of the conflict. She explains that the short term will likely see headline inflation, but if the conflict persists, there could be impacts to core. With this uncertainty, she finds that many financial professionals are choosing to operate with caution.
However, Basak is noticing emerging opportunities in structured investments, amid public market selloffs in software. She adds that this could be a time to lean in, as value is being created after three years of a bull market.
Within private credit, however, near term pressures remain. Basak finds that firms are actively navigating how to align liquidity expectations with their advisor base, particularly since these strategies were not originally designed to offer daily liquidity. Even so, she adds that the market is hardening, which means forward returns may start to improve.
Looking ahead, Basak emphasizes the importance of education in 2026. She highlights that iCapital is focusing on diving deeper into what each private market asset class is providing alongside traditional asset classes.
Resources:
iCapital 2026 Market Outlook: Balancing Divergences Amid Blind Spots