Private equity started 2026 with strong momentum, but fresh market volatility shifted dynamics toward greater selectivity. Investors are now focusing on high-quality, well-structured deals, particularly in asset-heavy sectors like energy, utilities, infrastructure and select real estate, where cash flows are visible and inflation linked. AI-led disruption is reshaping software investment strategies, prompting enhanced diligence and targeted investments in AI-ready companies. Exit markets remain steady, supporting a positive outlook centered on operational value creation. Overall, private equity demonstrates resilience and adaptability amid evolving geopolitical and macroeconomic challenges.

All data contained in this document is sourced from Dealogic and EY analysis unless otherwise noted. For detailed findings, please visit ey.com/pepulse.