Global private equity investment hits four-year high in 2025 as investors focus on top end deals, according to KPMG’s Pulse of Private Equity

• Global PE investment rises to US$2.1 trillion in 2025, up from $1.8 trillion in 2024
• Deal volume falls from 20,836 deals in 2024 to 19,093 in 2025 as investors remain selective
• The US attracts $1.1 trillion in PE investment — more than half of global total in 2025

Global PE investment surged to a four-year high of 2.1 trillion in 2025, despite a continued slowdown in deal activity, according to KPMG’s Q4’25 Pulse of Private Equity report. While the uptick in investment was positive, ongoing global geopolitical uncertainties and a large inventory of aging assets in need of exit kept many PE investors highly selective over the course of the year.

In contrast, deal volume declined for a second consecutive year, falling from 20,836 in 2024 to 19,093 in 2025 — well below historical norms. This divergence reflects the clear shift in market dynamics, with PE firms prioritizing fewer, larger transactions over broad-based dealmaking. In Q4’25 in particular, the global PE market saw ten megadeals valued at $6.5 billion or more, including five transactions in the US alone.

The Americas attracted the largest share of PE activity during 2025, accounting for more than 55% of total global PE investment ($1.2 trillion) and just under half of all PE deals (9,118). The US attracted the vast majority of this activity ($1.1 trillion across 8,232 deals), reinforcing its position as the primary engine of global PE investment. The EMA region ranked a distant second, attracting $729.9 billion across 8,278 deals during the year, while the ASPAC region saw $144.8 billion invested across 1,162 deals.

The Technology, Media, and Telecommunications (TMT) sector accounted for the largest share of global PE investment in 2025 ($654 billion) — the second-highest annual total on record for the industry after 2021. Industrial Manufacturing ranked second with $327.6 billion in investment, followed by Energy & Natural Resources with $276.5 billion. The consumer and retail sector also saw good traction with PE investors, attracting $262.2 billion in investment over the year. 

2025 - Key Highlights

• Global PE investment rose from $1.8 trillion in 2024 to $2.1 trillion in 2025, despite a decline in deal volume from 20,836 to 19,093.
• The Americas accounted for more than half of global PE investment, with $1.2 trillion deployed across 9,118 deals; this total approached the $1.4 trillion peak seen in the Americas in 2021 — previously viewed as an outlier year — even as deal volume declined to a five-year low. The US attracted $1.1 trillion of this total across 8,232 deals.
• The EMA region attracted a robust $729.9 billion across 8,278 PE deals in 2025. This marked a notable increase from $649.4 billion in 2024, despite deal volume declining from 8,922 year-over-year.
• PE investment in the ASPAC region edged upwards, rising from $142.2 billion across 1,318 deals in 2024 to $144.9 billion across 1,162 deals in 2025.
•  Cross-border PE activity reached a record $1.13 trillion in 2025, surpassing the previous high set in 2021.
• Global PE exit value totaled $1.3 trillion in 2025, marking the second-highest annual level in the past decade, trailing only 2021.
• The sectors that saw the most PE investment globally in 2025 were Technology, Media & Telecommunications (TMT) at $654 billion, Industrial Manufacturing at $328 billion, and Energy & Natural Resources at $276 billion.
• Global PE fundraising was the weakest in recent memory, with just $407.6 billion raised across 543 funds — down from the $608.8 billion raised across 1,025 funds in 2024.

Global PE exit value reached $1.2 trillion in 2025 — the second-highest level in more than a decade — highlighting a solid year despite a very selective exit environment. Meanwhile, exit volume dropped to a five-year low of 3,162 during the year — which is concerning given the large inventory of aging assets in need of exit and the amount of capital stuck in the market as a result.

The strong uptick in exit value suggests improved pricing, increased buyer confidence, and a willingness to invest in high-quality assets. Looking ahead to 2026, there is optimism that momentum for exits is building and that the year will see the bounce back that is needed to see capital returned to LPs, and help unlock the funding currently stuck in the market to renew the PE investment cycle.

Global exit value from public listings reached $324 billion in 2025 — its highest level since 2021. The US and Europe accounted for the majority of this activity, contributing $149.6 billion and $100.8 billion, respectively. While the ASPAC region saw a resurgence in its IPO activity generally in 2025, this momentum has yet to translate into a meaningful recovery in PE–backed IPO exits — which remained quite constrained throughout the year.

PE activity in the Americas remained very selective in 2025, with PE investors across the region focusing primarily on making fewer, larger, and more strategic deals, including scale-driven add-ons; during the year, the region saw total PE investment rise to $1.2 trillion even as deal volume fell to a five-year low of 9,118 deals. The US dominated this activity, accounting for $1.1 trillion in investment and nearly all of the region’s largest deals. 

Canada and Latin America both showed resilience in PE investment despite lower deal counts, supported by growing interest from global investors, stronger government-business alignment, and rising activity in sectors linked to AI, the energy transition, and infrastructure — setting a solid foundation for investment heading into 2026.

PE investment in the EMA region increased from $649.4 billion in 2024 to $729.9 billion in 2025, even as deal volume declined to 8,278 transactions - highlighting a continued focus on high quality deals centered around top of the market assets. The UK led the region in both investment and deal activity, while Germany, France, and Spain saw higher deal values, and India and Italy stood out with rising deal volumes. Buy-and-build strategies remained key throughout the region, with add-on investment reaching a four-year high as PE firms focused on making larger, more strategic acquisitions. While the EMA region saw a modest rise in exit value, exit volumes remained subdued, driven by valuation gaps and a weak IPO environment. 

The ASPAC region saw steady PE investment in 2025, attracting $144.9 billion in investment across 1,162 deals; this resilience was driven largely by a sharp increase in PE activity in Japan, where PE investment more than doubled year-over-year — to a record $51.8 billion. In contrast, China saw both PE investment and deal volume fall to multi-year lows as PE investors remained cautious amid macroeconomic and geopolitical uncertainties. In Australia, deal flow remained quite resilient, despite lower total PE investment. 

Across the ASPAC region, PE investors took a more defensive, wait-and-see approach to deal-making given global uncertainties, focusing primarily on domestic-oriented sectors such as healthcare, financial services, and digital infrastructure.

Heading into 2026, there is cautious optimism that exit volumes will continue to improve as market conditions improve, valuation gaps narrow, and some global uncertainties stabilize. The US IPO market opening in 2025 — at least for high-quality, resilient assets with proven performance — bodes well for exit activity heading into 2026. As exits ramp up and an increasing amount of capital is returned to investors, PE deal activity will likely begin to pick up more broadly. 

Looking ahead, AI-related infrastructure and energy are expected to be hot areas of PE investment, in addition to healthcare and financial services. 

Corporate Communications:
Marie-Helene De-messou

T: 202.569.6824
E: mdemessou@kpmg.com

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