Real Assets in 2026: Valuations, Cash Flows, and Structural Growth Tailwinds

Key Takeaways

• Macroeconomic backdrop supportive of real assets.
  Accommodative central bank policy, strong corporate earnings, and investor risk appetite via M&A and AI capex are conducive to real asset businesses.
• Structural demand drivers are strengthening cash flow visibility.
  Power demand from digitalization, constrained real estate supply and resilient infrastructure investment have historically supported earnings growth across utilities, renewables and high-quality real estate.
• Late in a cycle, selectivity and quality remain critical.
  We favor assets with durable cash flows, strong balance sheets and execution capability—while maintaining a defensive posture in lower-quality credit and areas where spreads inadequately compensate for risk.