Private market investors have been facing increasing transparency and governance hurdles in light of rapid growth in investments made in artificial intelligence (AI), as per a recent report released by MSCI.

As per its State of Private Markets 2026 report, MSCI has stated that the infrastructure surrounding private markets is not in line with the amount of money that is being invested in them. According to the report, issues related to valuations, reporting, and disclosures have emerged as major problems amid increased investment in private markets.

Currently, 19% of the total assets owned by public pensions and sovereign wealth funds all over the world are invested in private markets, worth nearly $7 trillion, as per the report. With increased allocations, investors want to gain better insight into their private investments through timely updates.

The report from MSCI stated that the lack of timeliness remains the biggest concern, as many investors receive data from private markets only on a quarterly basis. In most cases, this delay takes place several weeks after the reporting period is over.

AI-driven investments were pointed out to play a significant role in influencing the private market. Assets associated with AI constitute about 16% of the global private equity, amounting to roughly $739 billion in a $4.5 trillion market. These include investments in companies developing software, processing data, and energy infrastructures for data centers.

MSCI mentioned estimates made by the industry suggesting that between $5 trillion and $7 trillion might be needed during the next decade for data center infrastructures to meet the growing demand for computing power. The volume of construction starts exceeded 27 gigawatts in 2025, whereas development costs hit $341 billion.

According to the report, the expansion of AI infrastructures contributes to growing complexity in private market investments. State-of-the-art data centers require special cooling solutions, sophisticated computing technology, and large financing compared to traditional real estate projects.

Evergreen investment funds have grown, with assets worth over $500 billion in the United States by September 2025, according to MSCI. These investments put increased emphasis on valuation accuracy since investors join or leave funds depending on reported asset values from managers.

MSCI indicated that improved reporting and valuation practices are necessary as the private market continues to grow and attract different types of investors.