Capital in Motion: Repositioning at Scale for the Next Cycle | Global Conference 2026

Why It Matters

The shift toward security‑driven, AI‑focused capital allocation reshapes risk assessments and creates new alpha opportunities for global investors.

Key Takeaways

• Geopolitical tensions reshape global capital allocation priorities for investors.
• National security now includes energy, data, and supply‑chain resilience.
• Gulf sovereign wealth funds are redirecting trillions toward resilience investments.
• AI governance and workforce impact dominate pension fund stewardship agendas.
• Carlyle leverages proprietary data and AI to accelerate investment decisions.

Summary

At the Milken Global Conference 2026, senior leaders from Carlyle, CalPERS and sovereign‑wealth fund managers examined how ongoing wars in the Middle East and Ukraine, coupled with lingering oil price shocks, are forcing a fundamental re‑prioritization of capital. They argued that "national security" now spans energy, data and supply‑chain resilience, prompting investors to seek assets that can withstand material disruptions.

The panel highlighted several data points: Gulf sovereign‑wealth funds have deployed roughly $3.2 trillion, while CalPERS manages a $630 billion portfolio that must balance disciplined, long‑term simulations against geopolitical risk. Complexity has risen across asset classes, with 11‑12 % of global capital flows discussed, and AI identified as the dominant productivity driver for the next decade.

Harvey emphasized that "national security is the single highest priority politically and economically," while Ron noted the massive capital realignment away from the Gulf. Marci stressed the importance of transparent communication and scenario analysis for pension beneficiaries, and Dan warned that AI governance and human‑capital disruption are the biggest concerns for institutional stewards.

For investors, the takeaway is clear: while the United States remains a core deployment market, meaningful alpha now exists in regions investing in resilience and AI‑enabled transformation. Firms like Carlyle are betting on proprietary data and AI to accelerate decision‑making, suggesting a competitive edge for those who embed technology into capital‑allocation processes.

Original Description

Watch all 2026 Global Conference session replays: https://milkeninstitute.org/events/global-conference-2026/program

As the global economy enters a more complex and less synchronized phase, institutional investors and corporate leaders are repositioning to navigate higher-for-longer interest rates, evolving liquidity conditions, shifting geopolitical dynamics, and the accelerating impact of artificial intelligence. Traditional allocation models are being tested as the lines between public and private markets – and between markets, balance sheets, and operating businesses – continue to blur, with sources of return becoming more dispersed. This discussion brings together leaders from across the financial ecosystem to examine how capital is being deployed at scale, how portfolios are being constructed and recalibrated, and how firms are managing liquidity, risk, and resilience in an increasingly fragmented environment. Panelists will also explore how these structural shifts are reshaping investment strategies, corporate priorities, and the broader relationship between capital markets and the real economy, while identifying emerging opportunities across asset classes and industries."

Sara Eisen

Anchor, CNBC

Marcie Frost

CEO, California Public Employees' Retirement System

Ron O'Hanley

Chairman and CEO, State Street

Harvey Schwartz

CEO, Carlyle

Daniel Simkowitz

Co-president, Morgan Stanley