Aethon Capital 2025 Year in Review: Discipline Pays Off

As we close the books on 2025, I want to share a brief reflection on the year that was, the lessons we are taking from it, and the opportunities we see ahead.

By any measure, 2025 was a year of progress for Aethon Capital. We closed our largest credit fund ever at $7.1 billion, raised the first close of our tenth flagship private equity fund, completed several landmark acquisitions across all four of our investment platforms, established our Asia-Pacific headquarters in Singapore, and welcomed nearly 80 new colleagues to the firm. Total assets under management surpassed $52 billion for the first time, and our portfolio companies collectively created over 18,000 jobs.

But the headline metrics tell only part of the story. What I am most proud of is how the firm performed in moments of stress and decision-making.

When credit markets briefly seized up in early 2025 following the regional banking concerns, our credit team continued originating high-quality loans on attractive terms while many competitors retreated to the sidelines. When European real estate capital markets remained dislocated through much of the year, our real estate team patiently waited for the right opportunities and then moved decisively when they emerged. When the AI infrastructure thesis began to mature into investable opportunities, our infrastructure team had the conviction—built through eighteen months of primary research—to launch a dedicated $4 billion strategy.

Each of these moments reflects what I believe is Aethon's most important competitive advantage: the discipline to be patient when others are impatient, and decisive when others are paralyzed.

The macro environment in 2025 was characterized by what economists call "muddle through": growth was uneven, inflation moderated but remained above central bank targets, and interest rates stabilized at levels well above pre-pandemic norms. Asset prices were generally rangebound, and dispersion between high-quality and lower-quality assets widened materially. This was a difficult environment for momentum strategies and broad market beta, but a productive one for selective, fundamental investors.

Looking ahead to 2026 and beyond, we see five themes that are likely to define the investment landscape:

**First**, the AI infrastructure build-out. As I described in our recent press release on the launch of Aethon AI Infrastructure Partners, the capital required to power the AI economy represents one of the largest peacetime capital deployment programs in history. We expect this theme to define the next decade of infrastructure investing.

**Second**, geopolitical risk repricing. The renewed tensions in the Middle East are not a temporary aberration—they are part of a longer-term repricing of geopolitical risk that will affect everything from energy markets to supply chains to defense spending. We are positioning the portfolio to benefit from this shift while protecting against its downside.

**Third**, the maturation of private credit. The private credit asset class has now achieved scale and acceptance comparable to the broadly syndicated loan market. The next phase will be characterized by increased competition, the need for genuine origination differentiation, and the importance of structuring and workout capabilities.

**Fourth**, the energy transition's pragmatic phase. After several years of investor enthusiasm, the energy transition is entering a more pragmatic phase characterized by harder economics, longer build-out timelines, and increased recognition of the role conventional energy must continue to play during the transition. This creates opportunities for disciplined investors who can underwrite both conventional and renewable assets.

**Fifth**, the demographic transformation of Asia. The growth, urbanization, and middle-class expansion underway across South and Southeast Asia represents perhaps the largest economic transformation of the next two decades. Our expanded Singapore headquarters positions us to participate as principals.

I want to close with a thank you to our limited partners, our portfolio companies, our colleagues, and our broader community. Aethon Capital's success has always rested on the quality of the relationships we build and the trust we earn. As we head into 2026, I am as energized about the opportunities ahead as I have been at any point in my nearly thirty years leading the firm.