Global Private Equity Factbook – Q1 2025

In Q1 2025, private equity (PE) investments declined amid rising concerns over sweeping US tariffs, tightening credit conditions, and escalating geopolitical tensions. PE activity is expected to remain subdued in the next few quarters due to continued seller caution and persistent valuation gaps.

Deal activity dropped by 21% compared to the previous quarter, driven primarily by reductions in private investment in public equity (PIPE) deals, buyouts, and growth/expansion transactions. Capital investments also declined by 11%, as lower leverage thresholds hindered the execution of large-scale deals. While investment activity increased in North America, Latin America, and the MENA region, it declined in Europe and Asia Pacific.

Exit activity fell by 33%, as firms opted to retain portfolio companies longer amid ongoing market volatility. Despite the subdued environment, fundraising levels rose compared to the previous quarter. Deals in the IT, energy, and healthcare sectors accounted for approximately 37% of the total capital invested in Q1 2025.

Although dry powder levels declined slightly, PE firms still hold record amounts of unspent capital, increasing the pressure to deploy funds—particularly as fundraising momentum slows and limited partners (LPs) become more selective.

This edition of the Global Private Equity Factbook offers insights into the global PE investment activity, features the key target sectors, and provides an outlook for the industry in the upcoming quarter.