Insights

Global PE Investment Analysis and 2026 Outlook

TL;DR

In the 2025 global PE market, more capital was deployed yet deal count actually declined. The reason is simple — PE investors began choosing “well” over “more.” With a record USD 1.7 trillion in dry powder, PE managers are expected to deploy aggressively in 2026, reigniting markets centered on AI, healthcare, and energy.

More money in, fewer deals out — why?

The 2025 scorecard for global PE seems counterintuitive at first glance. Investment value hit USD 2.1 trillion — a four-year high — but deal count fell from 20,836 to 19,093.

There is a clear reason for the paradox: rather than chasing speed and volume, PE investors are concentrating larger amounts of capital into higher-conviction assets. The entire market has shifted into “select and concentrate” mode.

By region, the Americas remain dominant. The region recorded 9,118 deals and USD 1.2 trillion, accounting for more than half of global PE investment. Europe, the Middle East, and Africa (EMA) are catching up fast — investment value rose from USD 649.3 billion in 2024 to USD 729.8 billion in 2025 despite a decline in deal count. Quality is rising over quantity.

What got the money — the sector picture

The hottest sectors in 2025 were Technology, Media & Telecom (TMT) and infrastructure. TMT led with USD 654 billion in investment, while infrastructure and transportation hit all-time highs in both deal value and count, fueled by surging demand for AI infrastructure.

One more trend to watch: corporate carve-outs of non-core assets. Large corporates spun out subsidiaries and divisions to refocus on core operations, and PE managers absorbed them as premium deals. As interest-rate conditions stabilize and private credit markets mature, complex deal structures have become more executable.

Fundraising vs. exits — diverging signals

The more active investment becomes, the more fundraising and exits matter. In 2025, however, the two diverged sharply.

Fundraising was cold. US PE fundraising plunged to USD 278.5 billion — a 10-year low — and the number of new funds formed fell more than 50% year-on-year. LPs are concentrating their relationships with proven large managers rather than spreading allocations across many smaller funds — a tougher environment for small and mid-sized PE houses.

Exits, by contrast, rebounded in value. Global PE exit value reached USD 725.1 billion in 2025 — the second-highest level in a decade. However, exit count was the lowest in ten years. Selective exits centered on large assets only — the broader exit bottleneck remains unresolved.

2026 outlook — capital ready, hunting for targets

One number matters most for reading the 2026 PE market: PE dry powder reached an all-time high of USD 1.7 trillion at year-end 2025. In plain terms, there is more capital ready to invest than there are compelling assets to deploy it into.

In 2026, AI-related infrastructure, energy, healthcare, and financial services are expected to see particularly active deal-making. New fund formation, however, will likely remain a tough environment.

For owner-operators, the implication is clear. When PE managers under pressure to deploy large amounts of capital compete for quality assets, thorough preparation and the right timing become the decisive variables that materially lift sale value.

KPMG Insight

The global PE market in 2025 has formally entered the “select and concentrate” era. With record dry powder, 2026 will see capital pile into prepared assets — one of the most favorable market conditions for owners contemplating a strategic sale.