In Q3 2025, private equity activity surged, achieving a record US$310b in deal value as firms capitalized on narrowing valuation gaps and renewed market confidence. With 156 deals announced, including six exceeding US$10b, the sector is pivoting towards larger transactions. Improved financing conditions and creative deal structures are facilitating this momentum. Looking ahead, 61% of firms anticipate increased exit activity, signalling a robust outlook as the market embraces a "risk on" approach, balancing optimism with discipline. All data contained in this document is sourced from Dealogic, PitchBook, and EY analysis unless otherwise noted.

The Dealogic data in this report are under license by ION. ION retains and reserves all rights in such data.

In the first half of 2025, private equity exits reached their highest levels in three years. Corporate acquirers became active buyers, and firms showed increased flexibility on valuations to facilitate the sale of long-held assets. Despite ongoing market volatility, global M&A activity rose by 30%, with private equity contributing significantly. Although fundraising challenges exist, many investors remain optimistic and expect increased deployment activity in the coming months. Firms are prioritizing exit readiness and operational enhancements across various sectors, reflecting a proactive approach in a dynamic private equity landscape.

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In Q1 2025, private equity firms saw a 45% rise in deal volume compared to the previous year. However, rising trade tensions are creating caution among investors. Many firms may limit capital deployment in the coming months, yet a higher-than-average risk tolerance indicates readiness to seize new opportunities. Firms are focusing on operational improvements within their portfolios and exploring sectors like aerospace and defense. Additionally, the return of corporate acquirers has boosted exit activity, reflecting a dynamic shift in the private equity landscape amid ongoing uncertainty.

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Matt Breitfelder, Partner, and Global Head of Human Capital at Apollo in conversation with Bridget Walsh, EY Global Head of Private Equity. In this episode Matt shares his insights about the role of talent and optimising personal performance in the asset management industry.

The views of third parties set out in this podcast are not necessarily the views of the global EY organization or its member firms. Moreover, they should be seen in the context of the time they were made.

Angelo Rufino, Partner and Head of Special Situations in North America and Head of Corporate Special Situations in Europe for Bain Capital, joins Bridget Walsh, EY Global Head of Private Equity. In this episode Angelo shares his insights on the differentiated opportunities for Special Situations investing. 17 mins.

The views of third parties set out in this podcast are not necessarily the views of the global EY organization or its member firms. Moreover, they should be seen in the context of the time they were made.

Private equity enters 2025 with strong expectations amid favorable market conditions. In 2024, PE firms announced US$565b in deals, a 25% increase in value and 20% in volume from the previous year. Confidence is high, with 73% of GPs expecting increased deployment activity. Factors driving this optimism include narrowing valuation gaps, increased asset availability, and improved macro visibility. Exit activity is also expected to rise, driven by secondary buyouts. Additionally, GPs anticipate a surge in IPOs and a continued focus on AI and private markets buildout.

Visit https://www.ey.com/pepulse to view this quarter's summary.

Key takeaways:

• PE firms enter 2025 with US$1.4t in dry powder; 73% of GPs expect increased deployment activity in the next six months.
• Supply chain issues ranked as a top concern, with 70% of GPs working with portfolio companies to assess these issues in light of proposed tariffs.
• GPs' top expectation for this year is an increase in IPOs, with companies in strong market positions well placed to go public.

The private equity (PE) market is bouncing back, with deal activity picking up thanks to clearer economic indicators and better financing options. Despite this dealmaking boost, exits are slower, posing challenges for investors and firms. The tech sector stands out, attracting significant PE interest due to favorable financing conditions, signaling a trend of increased tech-focused deals ahead.

Visit https://www.ey.com/pepulse to view this quarter's summary.

Key takeaways:

• PE deals experience a significant surge in 2024, especially in the second and third quarters, buoyed by growing market confidence, clearer economic indicators and improved financing conditions.
• The technology sector, fueled by advancements in artificial intelligence (AI) and cloud computing, leads growth, with a notable increase in demand for high-quality assets indicating a market primed for capital investment.
• Exit strategies encounter headwinds, with a downturn in value and sluggish IPO activity, prompting a shift in investor focus toward cash flow, while PE firms continue to pursue disciplined, strategic acquisitions and business expansion.

In this episode on the NextWave Private Equity Podcast, Matt Brown Founder, CEO and Chairman of CAIS, joins Bridget Walsh to discuss how technology can unlock private wealth for private equity.

Technology is revolutionizing the private wealth market, enabling independent advisors to access alternative investments and compete with larger firms. Founder, CEO and Chairman of CAIS, Matt Brown, shares his platform's role in streamlining the investment process and the importance of education in advisor empowerment. Listen to the discussion for insights about the future of private equity and the growing opportunities for asset managers in a market ripe for change.

Key takeaways:

• CAIS is leveling the playing field for independent advisors, granting them entry into the realm of alternative investments with cutting-edge technology.

• By simplifying the investment lifecycle, CAIS enhances accessibility and operational ease, broadening the scope for high-caliber alternative investment opportunities.

• Envisioning a shift in wealth management, CAIS is at the forefront, championing technology to foster a more inclusive and diversified investment landscape.

Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from Q2 2024 that are top of mind for Private Equity (PE) investors.

PE Pulse is a quarterly report and corresponding podcast miniseries that provides analysis and insights on private equity market activity and trends.

Visit https://www.ey.com/pepulse to view this quarter's summary.

In this episode, Pete Witte, EY Global Private Equity Lead Analyst, explores into the market environment for private equity, offering a comprehensive analysis of the current trends, deals, and the overall financing landscape.

Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from Q1 2024 that are top of mind for Private Equity (PE) investors.

PE Pulse is a quarterly report and corresponding podcast miniseries that provides analysis and insights on private equity market activity and trends.

Visit https://www.ey.com/pepulse to view this quarter's summary.

In this episode, we will provide a quick rundown on some of the trends and the themes that we're seeing in the market with respect to deals, the credit environment and how the macro situation is going to impact dealmaking over the course of the year.