Q1’26 Pulse of Private Equity

Americas sees $247 billion in PE investment in Q1’26

PE investment in the Americas slowed somewhat in Q1’26, with $247 billion invested across 1,980 deals. During the quarter, the rolling 12-month total for PE investment also slipped, from $1.3 trillion in Q4’26 to $1.2 trillion in Q1’26, while the rolling 12-month total for deal flow dropped to 9,400, the first time in 7 quarters it’s fallen below 10,000.
The US alone accounted for $228 billion of the total investment seen in the Americas during Q1’26, including 9 of region’s 10 largest deals, while the rest of the region accounted for $19 billion. Outside of the US, the largest deal in Latin and South America was the buyout of Peru-based renewable energy company Inkia Energy by the Canada Pension Plan and I Squared Capital for $3.4 billion.¹

After strong 2025, PE investment in Canada starts 2026 at a slower pace

At the end of Q1’26, PE investment in Canada stood at $11.9 billion across 117 deals, well off the pace seen during 2025. The softening was quite noticeable in the rolling 12-month figures, with 12-month deal value falling from $69.3 billion in Q4’25 to a two-year low of $54.6 billion in Q1’26 and the 12-month rolling deal volume falling from 647 to 586 — a level not seen since Q4’20. With the M&A environment warming up, there were a good number of PE-backed businesses in Canada being prepped to go to market during Q1’26, although the conflict in Iran slowed activity in the last month of the quarter amid growing concerns about the potential impact of a prolonged conflict on fuel prices, businesses and the ability to value businesses.

Macroeconomic conditions in Latin America remain stable; Venezuela and Argentina see some interest

Within Latin America, macroeconomic conditions held relatively stable quarter-over quarter. Notably, Venezuela and Argentina saw a little positive momentum in Q1’26 as a result of increasing interest from the US administration. In Venezuela, investors watched the negotiations between the US and Venezuela with interest. Should new regulations make it easier for US companies to invest in the energy, oil and gas space in Venezuela, any activity would likely be dependent on significant ancillary investments in infrastructure, which could spur PE activity. Meanwhile, Argentina continued to implement reforms aimed at facilitating foreign investment. Its strengthening relationship with the US also caused some PE investors to take more interest in opportunities in the country.

Trends to watch for in Q2’26

Heading into Q2’26, the biggest question mark is the Americas is around the conflict in the Middle East and how it will play out. Should waters be calmed quickly, expectations are quite hopeful, particularly for the exit environment given the strong stable of assets ready for exit.

In Canada, there is hope that once market conditions improve, a few more IPOs will come to market, building out the breadth of exit opportunities and injecting some positivity into the market as a whole.

In Latin America, PE investors are expected to remain quite interested in areas like energy and digital infrastructure.
The critical minerals sector could also see increasing interest, in addition to infrastructure spurred by development finance companies. As fintechs in the region grow and scale, there will likely also be an increasing number of VC owners selling their stakes to PE.

In Latin America, we’re going to see increasing PE activity in the fintech space in the future, as well as in agribusiness and, adjacent to energy, critical minerals. Latin America is a region very rich in critical minerals — and those minerals are needed to serve energy needs — renewable energy, electric vehicles and so on. The global demand for those minerals, particularly given the unrest in other parts of the world, is going to drive PE investors to look at opportunities in Latin America over time.

Jean-Pierre Trouillot

Partner, Advisory Leader for Latin America

KPMG in the US