Across panels and roundtables, speakers explored how sustainability, resilience, digital infrastructure and shifting Limited Partners’ (LP) expectations are shaping opportunities for investors. Here are the standout themes from the day.

Panel with Rahel Haque, Sustainable Finance Advisory Funds and Sponsors Lead, NatWest, including Scott Livingstone. International Advisor, NatWest and Michael van der Meer, Head of Sustainability, M&G Investments.

Key themes:

• Security and defence creating European opportunities: Security and defence were highlighted as key investment themes across the next decade, as Europe looks to improve its resilience and independence from historical partners. A shift from ‘cost-optimised’ to ‘risk-adjusted’ supply chains will create opportunities for European businesses as local, diversified procurement increasingly sought with some countries already well positioned (i.e. France).
• Sustainability is inherent: Sustainability remains core to fundraising activity across the private markets. Biggest driver of returns for wealth allocators, remains asset allocation and sustainability is reflected in the thematic trends that are driving thematic allocations. In response to wider geopolitical trends, existing technologies / industries are no longer viewed through a single lens but positioned accordingly via a multifaceted lens (e.g. space tech – environment – security surveillance).
• AI is not a ‘bubble’: Huge amounts of investment is needed to build out the digital infrastructure (e.g. data centres) to meet global demand from AI over the next 5 years (global data centre capacity due to double by 2030 from 100GW to 200 GW). Investments as a relative share of global GDP are still small and lower than other historical infrastructure buildouts. Sustainability forms a critical component of the investment case for these projects, in particular the high energy / water usage, which GPs need to assess and conduct the necessary due diligence on. 

Facilitated by Vishal Saxena, Fazl Ahmad and Rahel Haque from NatWest’s Sustainable Finance Advisory team.

Key learnings included;

• Alternatives appear at an early stage in applying resilience and adaptation measures more strategically. The workshop highlighted the growing focus on cat bonds, parametric insurance and other physical‑risk transfer tools, which are moving centre‑stage as climate‑related losses intensify and the role of insurance – still less well understood across private markets in this context – comes into sharper focus. Participants agreed that physical‑risk coverage for alternatives is nascent but likely to become increasingly important as climate events accelerate and pricing evolves. A key question remains on how far adaptation and resilience considerations are already embedded in credit and investment decisions, and where the major gaps still lie.
• Physical risk data presents a challenge: Participants noted that in a portfolio of assets, diversified from a geographic and asset class perspective, it is difficult to model a single portfolio-level physical risk mitigation factor. This is driven by gaps and inconsistencies in physical risk data, and huge variety of climate disasters that can occur in different regions.
• Decarbonisation as a value creation lever: As alluded to in the opening panel, sustainability has been identified as a value creation driver across the alternatives space. Whilst private equity has a direct benefit with a  n increased value at exit for portfolio companies, participants in the private credit space are also increasingly embedding sustainability considerations with their due diligence at origination. However, there are challenges with regards to converting environmental benefits to quantitative economic uplifts, as some participants also noted that returns are the priority, and decarbonisation levers may only make sense if there is an offsetting economic benefit.    

Closing panel with Agnieszka Enchev, Private Finance Sales, NatWest, including Gaetan Aversano, Principal in Global Wealth Management Solutions team, Apollo

Key insights:

• The rise of Evergreen structures: Evergreen structures are becoming increasingly adopted as GPs seek ways to offer better liquidity and access to Private Markets for individual investors. The panellists agreed that independent valuations, capped leverage, and enforceable gating/swing‑pricing protect individual investors by preventing valuation smoothing and managing redemption stress. Conversely, despite being expected to persist as a complimentary capital source, evergreen structures can only successfully be established by GPs who have the experience, expertise and scale to execute.
• Fund Financing innovations: Panellists noted that innovative structures can expand funding and improve capital flexibility, helping markets absorb shocks and reduce reliance on traditional exits, whilst creating potentially new GP-bank partnerships.
• Continuation Vehicles: Continuation vehicles are not merely mechanisms to redistribute risk among LPs or to re-time exits. Rather, they provide a structured liquidity solution that offers LPs flexibility in how they redeploy capital, while also enabling continued ownership of high-conviction assets.

Closing the event, Felix Eschwege, Head of Private Finance Sales DACH, NatWest, stressed the important role of private markets in Europe: “Today’s discussions underscored the momentum building across private markets, and we leave Zurich with a shared commitment to driving sustainable growth and meaningful innovation together.”  

If you’re interested in the topics discussed at this event and want to learn more, then please contact: Felix Eschwege, Rahel Haque, Agnieszka Enchev or your NatWest Relationship Manager.

This material is intended for, and directed at, wholesale or professional investors only and should not be distributed to or relied on by retail clients in any circumstances. It is provided for information purposes only. This material is intended for your sole use and is provided to you on the understanding that, before entering into any transaction referred to in this material, and/or any related transaction, you will ensure that you fully understand the potential risks and return of such transaction and determine whether it is appropriate for you given your objectives, experience, financial and operational resources, and other relevant circumstances. Nothing in this material constitutes an offer or invitation to enter into any engagement or transaction or an offer or invitation for the sale, purchase, exchange or transfer of any securities or a recommendation to enter into any transaction, nor is it intended to form the basis of any investment decision. Neither National Westminster Bank Plc, NatWest Markets Plc, NatWest Markets N.V. (and/or any branches) nor any of its affiliates (collectively, “NatWest”) is soliciting any specific action based on this material. The material does not take into account the particular investment objectives, financial conditions, or needs of individual clients. NatWest will not act and has not acted as your legal, tax, regulatory or accounting adviser and is not providing you with any investment advice nor does NatWest owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on NatWest for investment advice or recommendations of any sort. NatWest and its affiliates, connected companies, employees or clients may have an interest in financial instruments of the type described in this material and/or in related financial instruments giving rise to potential conflicts of interest which may impact the performance of such financial instruments. Such interests may include, but are not limited to, (a) dealing in, trading, holding or acting as market-maker in such financial instruments and any reference obligations; (b) entering into hedging strategies on behalf of issuer clients and their affiliates, investor clients or for itself or its affiliates and connected companies; and (c) providing banking, credit and other financial services to any company or issuer of securities or financial instruments referred to herein. NatWest and its affiliates, connected companies, employees or clients may at any time acquire, hold or dispose of long or short positions (including hedging and trading positions) which may impact the performance of a financial instrument. This material is subject to change, is indicative only and is not binding. Whilst it is based on information believed to be reliable, no guarantee is given that it is accurate or complete. NatWest makes no representation, warranty, undertaking or assurance of any kind, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this material, nor does it accept any obligation to any recipient to update, correct or determine the reasonableness of such information or assumptions contained herein. Any views or opinions expressed in the material (including statements or forecasts) constitute the judgement of NatWest as of the date indicated and are subject to change without notice. The stated price of any securities mentioned herein is as of the date indicated and is not a representation that any transaction can be effected at this price. NatWest accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However, this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not lawfully be disclaimed. This material is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. The information contained herein is confidential, is intended for use by only by you and may not be reproduced or disclosed (in whole or in part) to any other person without our consent. National Westminster Bank Plc. Registered in England & Wales No. 929027. Registered Office: 250 Bishopsgate, London EC2M 4AA. National Westminster Bank Plc is authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. NatWest Markets Plc. Incorporated and registered in Scotland No. 90312 with limited liability. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. NatWest Markets N.V. is incorporated with limited liability in The Netherlands, authorised and supervised by De Nederlandsche Bank, the European Central Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, The Netherlands, and is registered in the Commercial Register under number 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, The Netherlands. NatWest Markets Plc is, in certain jurisdictions, an authorised agent of NatWest Markets N.V. and NatWest Markets N.V. is, in certain jurisdictions, an authorised agent of NatWest Markets Plc. NatWest Markets Securities Japan Limited [Kanto Financial Bureau (Kin-sho) No. 202] is authorised and regulated by the Japan Financial Services Agency. Securities business in the United States is conducted through NatWest Markets Securities Inc., a FINRA registered broker-dealer (http://www. finra.org), a SIPC member (www.sipc.org) and a wholly owned indirect subsidiary of NatWest Markets Plc. Sustainable financing and facilitation represents only a relatively small proportion of NatWest Group’s overall financing and facilitation activities. Details of our financing and facilitation activities and associated emissions can be found in the NatWest Group – 2024 Sustainability Report (sections ‘Estimates of financed emissions’ (p.41) and ‘Estimates of facilitated emissions from bond underwriting and syndicated lending’ (p.45))