Global Private Equity Factbook – Q2 2025

In Q2 2025, private equity (PE) investments declined globally amid concerns over inflation, geopolitical tensions, tariff pressures, and tight credit conditions. PE dealmaking is likely to remain sluggish through H2 2025 due to continued seller caution and persistent valuation gaps.

Deal activity fell by 12% compared to the previous quarter, driven primarily by a slowdown in buyouts and growth/expansion deals. Capital investments also declined by 32%, as lower leverage thresholds hindered the execution of large-scale deals. While investment activity picked up in the Asia Pacific region, it declined both in North America and Europe.

Exit activity remained steady during the quarter, with a modest 5% increase over the previous quarter, indicating stable yet subdued investment realizations for investors. Meanwhile, capital raised by private equity firms declined further, continuing the trend of muted fundraising. Deals in the IT, financial services, and healthcare sectors together accounted for approximately 57% of the total capital deployed in Q2 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.