New Trends in Private Equity Investment in 2026: Valuation Recovery Shifts to Profit-Driven Growth, Core Asset Allocation Becomes the Focus

As the A-share market enters a new development cycle, several leading private equity firms have recently released their investment strategies for 2026. They generally believe that the market’s operational logic has undergone a profound change, with valuation recovery trends gradually fading. Profit growth ability has become the core variable driving asset prices, and fundamental differences between industries will continue to widen.

FountainVest Partners’ analysis points out that the first half of 2026, especially before the end of April, is a critical period for strategic allocation. The disclosure of annual reports and first-quarter reports of listed companies will verify changes in industry prosperity, pushing market investment logic back to the actual operational conditions of enterprises. Meanwhile, the improvement of the global macroeconomic environment will help reduce systemic market volatility and create favorable conditions for selected stocks. Fusheng Asset emphasizes that the market will dynamically calibrate asset valuations based on performance data, and targets with clear profit growth paths are expected to continue attracting capital.

The China Europe Rebo Research Team suggests that the current market has entered a multi-dimensional differentiation stage, with growth, cyclical, and high-dividend assets showing distinct performance. Investors need to build a three-dimensional evaluation system that includes industry prosperity, valuation reasonableness, and fundamental stability, to grasp structural opportunities through dynamic balancing. Yuan Lesheng Asset particularly warns that although structural trends will continue, sector rotation speed may accelerate, and there is a need to be alert to rising volatility risks. In particular, for companies related to AI large models, actual business progress will be a key factor influencing stock prices.

Regarding core asset allocation directions, XingShi Investment believes that 2026 will present a systemic value revaluation opportunity. It is optimistic about strategic emerging industries such as artificial intelligence, biomedicine, and high-end equipment, while also paying attention to traditional fields with improved supply and demand patterns, such as transportation infrastructure, optional consumer goods, and real estate. FountainVest Partners introduces the concept of “Core Assets 2.0,” believing that technological innovation and globalization will become the new core, with investments in AI focusing on infrastructure for computing power and intelligent robots, among tangible application scenarios.

Ning Yongfu Fund offers specific allocation suggestions from an industry trend perspective: first, manufacturing companies with global competitiveness; second, resource commodities constrained on the supply side; third, consumer recovery targets with reasonable valuations; and fourth, technology innovation driven by AI technology. The firm emphasizes the need to assess the growth and valuation match dynamically, considering the industry cycle position of each enterprise.