Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 3Q 2021 that are top of mind for 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 and infographic.

Five takeaways from 3Q 2021:

1. Global M&A markets are on their way to a record year, with private equity (PE) in the driver's seat.
2. PE as an asset class continues to grow, with retail and insurance markets positioned to drive future asset growth.
3. PE firms' continued focus on the technology sector is driven by rising needs for security, automation and the digital transformation of critical organizational functions.
4. Health care is garnering significant interest from PE due to favorable macro tailwinds, long-term growth expectations and an anticipated increase in consumer spending.
5. Deal activity is not limited to large-scale deals; middle market deployment is the highest since the global financial crisis.