Summary
This document is a report detailing the 2026 Private Equity Outlook with a focus on the European market. It outlines the performance of private equity in 2025, highlighting the resilience of the market despite geopolitical tensions and volatility. The report notes that while the investor journey was complex, underlying economic indicators such as moderated inflation and stable labor markets provided a supportive backdrop. It discusses the expected gradual improvement in global deal activity in 2026, driven by easing financing conditions and structural initiatives in Europe. The document emphasizes the valuation dynamics in Europe, where buyouts typically trade at lower multiples compared to the US, due to market fragmentation and local sourcing practices. Additionally, it underscores the importance of selectivity in investment strategies and the potential for European private equity to offer diversification and relative value for investors. Overall, the report presents a cautiously optimistic outlook for private equity in Europe as it moves into 2026.
