Private Equity Outlook 2026: Gaining Traction
Key Points:
- Private equity rebounded strongly in 2025 with deal value surging 44% to $904 billion, driven largely by a handful of mega-deals, including the record $56.6 billion buyout of Electronic Arts, though deal count declined 6%.
- Despite increased exit activity and a 47% jump in exit value to $717 billion, liquidity remains constrained with distributions to investors below 15% of net asset value for four consecutive years and an average holding period around seven years.
- Fund-raising slowed in 2025, with buyout funds dropping 16% to $395 billion and fewer funds closing; investors remain cautious due to limited cash returns from prior commitments, favoring established GPs with strong track records and