Global private capital trends: key takeaways from our international dinner

Insight

22.04.2026

We were delighted to host a dinner for a group of international lawyers to discuss emerging private capital trends across major global markets. The conversation surfaced a number of shared themes, and the key takeaways were as follows:

Significance of US global policy

There was broad consensus that US policy decisions continue to shape global investment sentiment most directly. Shifts seen in the US – eg the pivot away from environmental, social and governance (ESG) driven strategies – are being mirrored in other jurisdictions. Defence and dual-use technologies are attracting significant investment, but with mixed opportunities. Some jurisdictions are seizing the opportunity to be market leaders, while others face political constraints on what is possible.

National security and infrastructure protection are priorities

A recurring theme was the strengthening emphasis on national security and economic self-sufficiency. Many governments are taking a more protectionist stance on digital infrastructure, with heightened scrutiny around foreign investment.

Within this environment, data centres and AI infrastructure remain exceptionally active areas, drawing substantial capital. By contrast, smaller tech and AI businesses are facing tougher fundraising conditions. This prompted discussion about whether the surge in large-scale AI and compute investment might represent the early stages of a bubble.

Tax and immigration policy as drivers of talent mobility

The discussion also touched on the important role of tax policy in influencing the movement of people. Favourable tax regimes can act as a magnet for high-growth talent, encouraging entrepreneurs, investors and senior management teams to relocate.

Conversely, tax burdens or policy uncertainty (or the perception of either) have the opposite effect, prompting individuals – particularly internationally mobile professionals – to look elsewhere. It was noted that London is currently experiencing such departures.

Similarly, there were concerns that the UK (and other jurisdictions) may be experiencing a loss of talent as a result of immigration policy; with concerns in relation to universities being able to attract and retain top post-graduate candidates in the face of restrictive policies.

It was acknowledged that significant barriers in visa regimes and limited post-study visa options could result in graduates leaving just as they become economically productive. This 'leakage' of highly skilled talent was seen as a drag on innovation, productivity and long-term growth, especially in sectors reliant on technical and entrepreneurial skills.

London remains a highly attractive hub

Notwithstanding the reports of individuals leaving the UK, and a perceived lack of dynamism and growth, London was still widely regarded as retaining a strong position as a centre for private capital, deal-making and talent. Its concentration of international investors, established financing ecosystem and geopolitical stability continue to be significant draws.

Mergers and acquisition (M&A) activity varies across jurisdictions

Participants shared insights into their home markets, highlighting distinct dynamics across regions:

India continues to attract significant inbound investment, alongside active domestic buyers.
Japan remains strong on both inbound and outbound M&A, supported by robust international investor interest.
Italy is seeing sustained private equity investment, contributing to a very active deal landscape.

If you would like further detail on any of these themes, or sector-specific insights, please get in touch with Marie Bates or your usual Farrer & Co contact.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.