Global Private Equity Factbook – Q3 2025

In Q3 2025, global private equity (PE) investments increased as concerns over interest rate hikes eased, and macroeconomic conditions stabilized. PE dealmaking is expected to continue its gradual upswing through Q4 2025 and into 2026, supported by improving market confidence, easing financing conditions, and a strong pipeline of delayed transactions.

The PE market experienced a strong rebound in Q3 2025, with deal activity rising 17% quarter-over-quarter (QoQ), driven primarily by a surge in buyouts, PIPE transactions, and public-to-private deals. Capital investments also increased 2.1x QoQ, accompanied by a 1.7x rise in the average deal size. PE investments grew across all major regions, led by North America (217%), followed by Latin America (176%), and Europe (90%), among others.

Exit activity gained momentum, rising 23% from the previous quarter, reflecting stronger buyer interest, higher valuation multiples, and a more liquid exit environment. Meanwhile, capital raised by PE firms declined, extending the trend of subdued fundraising. Deals in the IT, financial services, and healthcare sectors together accounted for approximately 50% of the total capital deployed in Q3 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 global PE investment activity, features the key target sectors, and provides an outlook for the industry for the upcoming quarter.