Private Equity Market Update and 2026 Outlook

This document is a market update focused on private equity, providing insights into the state of the market as of late 2025 and predictions for 2026. It discusses the dynamics of deal activity, noting that while 2025 ended with strong deal activity and improved exit trajectories, uncertainty in policy and investor confidence impacted momentum throughout the year. The report highlights that entering 2026, deal activity is supported by several factors, including eased financing pressures and improved investor confidence. It also notes a shift in deal strategies, with a potential decrease in the use of continuation funds as traditional exit paths reopen. The document outlines a two-speed exit market, where high-quality assets are being exited earlier while older assets are held longer, impacting overall portfolio performance. Fundraising is expected to remain uneven, with investors likely to focus on established managers. The report concludes with a cautious optimism for 2026, anticipating increased exit activity and platform deals.