Corporate and investment banks (CIBs) are well positioned to offer advisory and financing services to private capital firms, which have collectively raised about $1 billion over the past decade.
However, the largest private capital players need more than deal-by-deal support. They also require assistance at the fund level, including private capital advisory, fund financing, GP-led M&A, secondaries, and related services, according to a McKinsey & Co. report released in December 2025.
“Credit cycles inevitably turn, and this one will be no exception. But given the sheer size of the asset class, banks cannot afford to approach private capital in an unstructured way,” the consulting firm said.
Banks have several pathways to tap into the sector, which has amassed roughly $1 billion in assets under management over the past 10 years, based on Preqin data. One option is adopting a more data-driven approach to client segmentation and tiering, McKinsey noted.
CIBs can also pursue a “top-of-house” engagement strategy with priority funds to better understand client needs across different levels. In addition, they may offer services that map client touchpoints while strengthening sales processes and performance tracking.
Looking ahead to 2026, CIB divisions are expected to face stiffer competition from specialized challenger firms, alongside rising geopolitical and technological risks.
Despite these challenges, McKinsey said CIBs could achieve a 20% to 30% boost in profits by following a four-part strategy: managing near-term uncertainty, enhancing operational flexibility, leveraging unavoidable structural shifts to support long-term growth and resilience, and continuing targeted investment in innovation.
To support operational preparedness, the firm added that CIBs can set up or expand a dedicated “nerve center” to track country-level developments, sector and client activity, and necessary adjustments to operating models.
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