⚡️ EconFlash Updates

⚠️ Private markets stress is back After a quiet April and May, pressure in private markets is resurfacing. Cliffwater’s flagship $31B private credit fund disclosed that investors requested withdrawals equal to 17% of the fund in Q2. Meanwhile, Partners Group capped withdrawals from one of its evergreen private equity funds and said it is ready to gate other funds if needed. The message is clear: liquidity risk in private markets has not disappeared. It was just out of the headlines. The $1.8T private credit industry is now facing a harder question: what happens when investors want liquidity from assets that are structurally illiquid? As AlphaValue’s CEO Pierre-Yves Gauthier put it: “The disease is spreading.” At the same time, another major trend is emerging on Wall Street. Jane Street plans to build and finance its own data center, not as a private equity-style AI infrastructure bet, but for internal use. The firm could use it to train AI models for trading, risk management, and asset price prediction. Two signals from the same market: Private capital is facing liquidity pressure. Quant firms are moving deeper into proprietary AI infrastructure. Finance is becoming less liquid, more automated, and more computationally intensive. #️⃣#️⃣#️⃣ #Finance #PrivateCredit #PrivateEquity #WallStreet #JaneStreet #AI #Markets #Investing