Q3’26 Pulse of Private Equity

PE investment in the Americas holds strong despite continued selectivity

At the end of Q3’26, the Americas stood at $854.6 billion in PE investment across 6,845 deals. The level of investment was off track of the region’s 2025’s total but still solid compared to historical norms. Deal volume, however, remained subdued as investors focused on selective execution, prioritizing capital deployment on high quality assets with strong value creation opportunities.

On a rolling twelve-month basis, the Americas saw PE investment dip from $1.3 trillion in Q2’26 to $1.2 trillion in Q3’26, while deal volume fell more from 10,115 to 9,414.

Deal market in Latin America becomes more active

Compared to 2025, the PE deal market in Latin America strengthened over the first three quarters of 2026, helped by an increasing number of secondary transactions, more exits from strategic PE to local strategics, and, in some sectors, a renewed interest in taking companies public following perceived improvements in the IPO market in the US. Following elections in Colombia, there appears to be some optimism around potential investment opportunities, particularly in sectors like fintech and housing.

Exit environment remains cautious; Canada sees increasing focus on exit readiness

The exit environment in the Americas was very cautious in Q3’26. While there were signs of recovery, selectivity remained a major theme, both in terms of what assets buyers brought to market and what assets buyers were interested in. As of the end of Q3’26, exit value ($426 billion) and the number of exits (947) were both well off 2025’s pace. Rolling twelve-month exit value provided some optimism, rising slightly from $622 billion to $665.7 billion quarter-over-quarter, although the twelve-month rolling deal volume fell to 1,401 — the lowest level seen since Q3’20.

During Q3’26, PE funds in Canada increased their focus on exit preparation and readiness, which could lead to an improvement in exit flow heading into Q4’26 and into 2027.

Trends to watch for in Q4’26

Heading into Q4’26, PE investment in the Americas is expected to remain relatively strong, although investment will likely remain highly selective, focused on high-quality assets and growth areas like AI and digital infrastructure and energy. Healthcare is also expected to be a robust area of PE investment across the region.
Despite ongoing trade concerns, KPMG’s outlook suggests there is a significant degree of optimism that PE investment in Canada can rise considerably over the coming quarters, in addition to M&A activity and other forms of investment.
In Latin America, fintech and infrastructure will likely remain key areas of investment. Collaboration between development banks and PE firms will likely also pick up as development banks look to bring in seasoned investors to help with diligence, deal structuring, and negotiations in order to move projects forward.

Things look bullish for Canada coming out the investment summit. Looking ahead to 2027, I’m expecting there to be a lot more M&A activity, including private equity activity. And I think that’ll be not just for large-scale deals, but also for mid-market and growth and venture.

John Cho

Partner, National Private Capital Leader in Canada, Global Institutional Investors Group Leader, and Head of Deal Advisory for KPMG in the Americas region.

KPMG in Canada