The macro environment is handing equity allocators a perfect setup. Real-time shelter data from Zillow and CoStar exposes rent inflation running near 1%, pulling actual core inflation well below the 2% threshold. Anastasia Amoroso of Partners Group pairs this disinflationary reality with explosive corporate fundamentals. S&P 500 revenue growth is hitting 15%, while baseline earnings of $358 could scale to $405 by the end of next year.

However, the current artificial intelligence trade is mispriced. Public markets are blindly chasing semiconductor giants trading at dangerous multiples of 30 to 40 times revenue. Real alpha generation requires ignoring the shiny frontier models and focusing on operational friction. Amoroso notes that true AI value creation is aggressively mundane. Partners Group enforces AI integration across 90% of its private portfolio companies, dwarfing the broader enterprise adoption rate of 35%. This disciplined deployment yields massive efficiency gains. Foundation Risk Partners recently weaponized automated processing to cut insurance underwriting times by 94%. Private capital operators with dedicated tech-focused board oversight are systematically extracting the actual economic value of AI, while retail investors overpay for the hype.

Source: Video - Private Markets will Drive AI Value Creation Long Term