From AI to Evergreen Funds
Private Markets Find Their New Balance: Insights from Milan
The Zero One Hundred International Conference gathered the private-markets community in Milan last week.
It was a well-attended event – the courtyard of Palazzo Castiglioni buzzed with LPs, GPs and advisors – though the venue, however beautiful, left something to be desired for a conference of this type.
Between espresso queues and echoing marble halls, the conversations were lively and the themes unmistakable: private markets are recalibrating in a polycrisis world.
“We’ve entered a new reality – one where investors must balance defence, technology and decarbonisation as core strategic pillars.”
Panelist, Private Markets in a Polycrisis World
Heard in Milan: Espresso, Exclusivity and a Dash of Italian Flair
Milan takeaway: less champagne, more Campari Spritz, and more substance. And maybe one more cornetto con crema before the next meeting.
Milan delivered its own brand of private-markets theatre. There was the morning run – sparsely attended – and the perennial debate: brioche or cornetto? (Answer: both, and make it quick before the next panel.)
There were the family offices – the real ones, the fake ones, and the ones still workshopping their surname – all orbiting the same marble lobby in various shades of linen and ambition. Behind closed doors, the usual mix of exclusivity and earnestness played out: LP lunches, whispered co-investments, and a few very deliberate “accidental” meetings over Negronis.
No Berlin-style champagne benders, no celebrity cameos, no Mel C sightings, no former or current heads of state, no ANTIFA or riot police.
This was Milan: elegance over excess.
The parties ended before dawn, but the tailoring was flawless and the handbags discreet. Breathwork sessions replaced beach clubs. Budapesterstrasse’s motley crew of conference hotels / meetings rooms, eclectic collection of caravans and private equity stores eclipsed by the impeccable shops lining the Corso Venezia and Via della Spiga – who does not want to take a quick break to get a tailored suit to go. The espresso hit harder than any after-party.
What everyone was talking about, between bites of truffle risotto, was inefficiency. Discovery, screening, allocation: still painfully manual. LPs confessed they need a better way to find, filter and engage with GPs. For us, that was the sound of validation. Orca isn’t just well received – it’s exactly what the market’s been waiting for.
Below are my takeaways from the panels I caught.
They were all interesting, and though lobbing a ‘hand grenade” into the mix would have been a bit much, many could have done with a bit more contention. They should have been smaller in size – less is more and preparation is key to have insightful and thought provoking panels.
But first a for the TL;DR crowd a quick summary.
My Reflections
Milan offered a snapshot of an industry in flux but not in crisis. Private markets are grappling with tighter liquidity, shifting geopolitics and rising scrutiny yet innovation, adaptability and cross-border collaboration are flourishing.
The venue may have been challenging, but the dialogue was anything but. From defence to AI, semi-liquids to secondaries, the narrative was clear: private markets are entering a new phase of realism – one defined less by exuberance and more by execution.
Executive Summary
- Private markets are being reshaped by geopolitics, digital transformation and liquidity innovation
- LPs are pressing GPs for faster DPI, realistic valuation and shorter hold periods
- Defence, AI and private credit emerged as key investment frontiers
- Semi-liquid funds and the next-gen wealth transfer are redefining distribution models
Milan in Context
“It’s a moment for realism, not retreat – LPs are rewriting their playbooks for a more complex world.”
The gathering reflected the mood of 2025’s private markets: pragmatic, slightly fatigued, yet forward-looking. Capital deployment is slower, but innovation in structure, strategy and communication is accelerating.
From LP boardrooms to GP portfolios, everyone is rethinking risk, liquidity and relevance.
Balentic in Milan: Listening, Learning, Connecting
“LPs want discovery and due diligence to go digital – that’s Orca’s mission in motion.”
Balentic were there in force myself and our Head of Sales. In addition, two advisors, one of our investors, and several GP and LP customers were there, as well as some customers soon to be onboarded.
It was a chance to connect, exchange views, and great to have those kinds of ambassadors in the room. But beyond that, we came to stay close to the private markets community, meet potential investors, and test our thesis in real conversations.
LPs repeatedly told us, unprompted, that they need a better, digital way to discover, screen and connect with GPs – to make due diligence faster, smarter and more transparent. And GPs, well they need to reach more LPs, more efficiently and a way to pre-qualify them
Exactly the reasons why we built Orca.
The Panels
Private Markets in a Polycrisis World
“Volatility isn’t a cycle anymore – it’s the system.”
The opening panel set the tone. Speakers examined how LPs and GPs are reassessing risk and returns amid geopolitical fragmentation.
The consensus: structural volatility is now the baseline, not a shock. Policy-driven “regime shifts” from technological decoupling to energy security are rewriting cost structures and investment horizons.
GPs spoke candidly about adapting underwriting assumptions: favouring market leaders with pricing power, diversifying revenue exposure across geographies, and backing firms on the right side of technological and energy transitions.
LPs, meanwhile, emphasised the need for greater operational discipline and active portfolio management. The era of passive exposure and blind-pool patience is over.
The Opportunity Set in AI
“Artificial Intelligence is becoming like electricity – plug in, switch on, and scale fast.”
Few sessions captured the zeitgeist like “The Opportunity Set in AI – Don’t Miss It.”
Investors described AI as a “new infrastructure layer” rather than a passing theme – comparable to electricity or the internet in its eventual ubiquity.
While hype remains high, panelists differentiated between foundational models (capital-intensive, high-risk) and applied AI (smarter, faster deployment).
Growth investors argued that value creation lies in making AI useful – embedding it into real-world distribution, operations and healthcare systems rather than merely funding the technology itself.
From an LP’s standpoint, diligence frameworks must now include AI readiness: whether a GP or portfolio company can evaluate, integrate and govern AI tools effectively. As one panellist put it, “AI literacy has become table stakes for credibility.” 
And yes, on the sidelines everyone talked about what no one dared say aloud on panels – the AI bubble is real, it is just a question of how big the fallout will be.
Beyond the Buzz: Investing in Defence
“Defence is no longer taboo – it’s strategic resilience – and ESG mainstream”
Another standout session tackled the once-taboo topic of defence investing.
Europe’s institutional capital is finally entering the space – cautiously, but decisively. EIF’s evolving stance and national re-industrialisation plans are shifting perceptions. Though, they will do defence and dual-use, but not (yet) guns and bullets.
Is that because drones and cyber warfare can’t kill people or because they believe sticks and stones make for a credible defense. I don’t know, but as with the ESG about face it seems incredibly hypocritical and was noted by not a few delegates.
Nonetheless, panelists agreed that defence today is less about “things that go boom” and more about dual-use technology, cyber resilience and autonomous systems. Aside from guns and bullets, the stigma is fading; pragmatism is in.
Venture and growth managers described a surge of opportunities in logistics, sensors, materials and AI-enabled systems. For LPs, the key is distinguishing sustainable industrial capability from ethically ambiguous weapons exposure.
The takeaway: Europe’s security imperative is catalysing a generational industrial build-out – one that demands private capital, but also governance sophistication.
Private Credit: The All-Weather Asset Class
“Private credit is no longer an alternative – it’s the new core.”
Private credit remains the market’s comfort blanket – but with nuance.
Managers from Ares, CVC, Carlyle, and Oaktree noted that direct lending has matured into a strategic allocation, not an opportunistic trade. Institutional demand is high, driven by predictable yields and a widening bank-funding gap.
However, speakers cautioned against complacency: higher rates have masked structural risks, and underwriting discipline is paramount. Scale matters – both for deal selectivity and for navigating workouts.
Little thought was given by any of the panelist in regard to asset allocation or portfolio construction that LPs must consider, but they did impress that European private credit still offers an illiquidity premium of roughly 150–250 basis points over public markets, with lower default volatility – but only for managers with real local origination and servicing depth.
Fireside Chat: Redstone VC and the First Diversified VC ELTIF Master Fund
“Europe’s venture future will be built as much on fund design as on deal flow.”
Redstone VC’s session was one of the most insightful.
Their diversified ELTIF Master Fund aims to bridge institutional and private investors through a regulated, evergreen structure .
It’s an early example of how venture is experimenting with fund architecture to reach Europe’s wealth market.
The learning: setup complexity and cost remain significant, two years, €200k and hundreds of internal hours, but the result could open access to diversified venture portfolios, offering both institutions and individuals a simple, regulated entry point.
For LPs, ELTIFs signal a future where distribution models evolve faster than fundraising cycles.
The Rise of Semi-Liquid and Evergreen Funds
“Semi-liquid funds aren’t shortcuts to liquidity – they’re smarter compounding.”
Liquidity innovation was a recurring thread throughout Milan.
Easily the most insightful panel – Semi-Liquid and Evergreen Funds showcased how alternative managers are testing hybrid models to bridge institutional and private wealth capital.
These structures, panellists explained, balance long-term compounding with limited redemption rights. They solve three chronic frictions: capital calls, liquidity mismatches, and accessibility for non-institutional investors.
Yet the warnings were clear: operational complexity, cash-flow forecasting, and valuation governance are critical. One speaker cautioned, “This is not a shortcut to liquidity – it’s a smarter way of compounding returns.”
For LPs, semi-liquid vehicles can complement rather than replace traditional vintages – a tactical bridge between cycles, or a buffer against denominator pressure.
Venture Capital Fundraising and the Great Wealth Transfer
“The next generation doesn’t want more spreadsheets – they want purpose, transparency and liquidity”
The next-gen panel provided a refreshing contrast: a candid conversation on the human side of capital.
Younger wealth owners, digital natives raised on transparency and convenience, are reshaping expectations of venture access, duration and data.
They want to invest in what they use and understand. They prefer direct exposure and short feedback loops, but still value professional guidance.
For GPs, this means rethinking engagement: education, liquidity options, and purpose alignment matter as much as performance.
LPs were advised to pay attention: the coming decade’s capital formation may depend more on user experience than on fund structure.
Global Bridges: Strengthening LP Connectivity
“Global connectivity starts with trust – tech can’t replace relationships”
The Global Connectivity fireside chat reminded everyone that private markets remain a relationship business.
Speakers from Malaysian pension fund KWAB, ACM Group and ILPA underlined that cross-regional collaboration depends on trust, transparency and long-term alignment.
While technology accelerates interaction, personal relationships still build confidence. As one participant put it: “Good people do the right thing – bad people don’t, no matter the contract.”
In an increasingly multipolar capital market, LP connectivity across Asia, Europe and the Americas is both a diversification strategy and a diplomatic exercise.
Italian Institutional Investors: Shifting into Higher Gear
“Italian LPs are moving from enthusiasm to institution – one disciplined allocation at a time”
The final panel focused closer to home.
Italy’s pension funds and insurance investors are gradually professionalising their private-asset allocations.
The message was pragmatic: progress is real but uneven.
While fundraising and portfolio construction have improved since 2010, governance and human-capital capacity still lag international peers.
The opportunity remains significant, particularly in mid-market MBOs, secondaries, and specialised funds, but sustainable growth depends on institutionalising processes, not just enthusiasm.
For LPs, Italy’s evolution exemplifies Europe’s broader maturation: cautious, relationship-driven, but gaining momentum.
A good conference, a few great insights, and as ever, a pleasure to be back in Milan. For us at Balentic, the buzz around Orca and our vision for a more connected, digital private market made the trip more than worthwhile.
Stay Illiquid!
Kasper
Disclaimer: For informational purposes only. Not an offer, solicitation, or recommendation to buy or sell any security or strategy. Not for retail or the general public. Views are personal and do not reflect any affiliated entity. Orca is not a placement agent and does not offer securities to the public. Access to strategy information is restricted to verified institutional investors under applicable laws (e.g. Reg D, AIFMD, UK COBS 4).
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