Global PE deal activity remains robust, with a volume slightly below that of 2025.
Key Takeaways:
• Resilient private equity market: Despite economic uncertainty, global PE deal and exit activity remain strong, with levels close to the record year of 2025.
• Europe feels the impact of the Iran conflict: Deal value (-22.6%) and deal count (-12.4%) declined in Q1 2026 due to the conflict, but club deals and add-ons increased. Exits plummeted, with a strong concentration in secondary buyouts.
• US shows resilience: The US PE market had a strong start to 2026, with over 2,400 transactions and 260.2 billion dollars in volume, despite tariff concerns and private credit issues.
PitchBook’s latest First Look analysis reveals that the global private equity (PE) market remained resilient in the first quarter of 2026, despite ongoing economic uncertainty and geopolitical tensions. Lower interest rates and abundant dry powder are helping the sector navigate new market challenges. While activity is slightly below 2025 levels, it outperforms the weak second quarter of last year, which was heavily impacted by the aftermath of Liberation Day.
Global Trends: Cautious Optimism
Global PE deal activity remains robust, with volumes slightly below 2025 but above 2024 and the weak second quarter of 2025. Exit activity declined quarter-over-quarter, but value increased due to a handful of large transactions.
The fundraising environment remains challenging: 86 billion dollars was raised in Q1 2026, comparable to the 88.4 billion dollars raised in the same period last year. As of June 30, 2025, global PE assets under management (AUM) totaled 6.4 trillion dollars, with 2 trillion dollars in dry powder and 4.4 trillion dollars in already invested capital.
Europe: Caution Dominates Amid Iran Conflict
Europe entered 2026 with momentum, but the escalating Iran conflict slowed growth. Deal value dropped by 22.6 percent, and deal count fell by 12.4 percent compared to the previous quarter.
“Sponsors are exercising caution and spreading risk through club deals and add-ons”, noted Nicolas Moura, senior analyst at PitchBook.
Exit activity also declined, with a 9.5 percent drop in value and a 31.3 percent decrease in volume. Secondary buyouts dominated the exit landscape as the IPO market remained closed and corporates pulled back.
The UK and Ireland stood out with their best quarter since Q3 2023, while France continued to lag. Fundraising remains weak, with only 23 funds raising 18 billion euros. Triton Partners’ 5.5 billion euros fund was a notable exception. The mid-market continues to show resilience, accounting for most of the capital raised year-to-date.
US: Turbulence but Strong Fundamentals
In the United States, tariff uncertainties, private credit concerns, and the Iran conflict created turbulence. Nevertheless, the numbers remained strong: over 2,400 deals totaling 260.2 billion dollars in volume.
“The second half of 2025 was the second busiest on record, after 2021”, emphasized Kyle Walters, PE analyst at PitchBook. Exits declined, but this is largely attributed to the exceptionally strong fourth quarter of 2025. Fundraising continues to slow, a trend Walters expects to persist unless exit activity picks up.
