Global private equity investment reached $1.5tn across 14,650 transactions in the first nine months of 2026, as capital became increasingly concentrated in fewer, larger deals, according to KPMG’s latest Pulse of Private Equity report.
Investment activity remained selective amid geopolitical uncertainty, elevated financing costs and inflationary pressures, with managers prioritising larger transactions and businesses offering identifiable value-creation opportunities.
The Americas accounted for $854.6bn across 6,845 deals, including $793.4bn in the US. Europe, the Middle East and Africa attracted $521.4bn across 6,249 transactions, while Asia-Pacific recorded $137.8bn across 1,109 deals.
The UK was the largest private equity market in the Europe, Middle East and Africa region, attracting $165bn across 1,510 transactions during the first three quarters, putting it on course for a five-year investment high.
Technology, media and telecommunications remained the largest sector globally, attracting $479.1bn, while energy and natural resources accounted for $243.3bn, positioning the sector for a record year as investors targeted power generation and infrastructure linked to AI demand.
Carve-out activity was also resilient, reaching $182.2bn across 1,254 transactions and putting 2026 on track to become the second-strongest year on record for corporate carve-outs after 2021.
Global private equity exit value totalled $985.2bn across 2,204 transactions during the first nine months. On a rolling 12-month basis, exit value reached $1.4tn, an 18-quarter high, even as exit volumes fell to their lowest level in 22 quarters.
The divergence reflects an increasingly concentrated exit market, with larger disposals accounting for a greater share of realised value while smaller transactions remain difficult to execute.
KPMG expects dealmaking to remain selective into 2027, with AI infrastructure, energy and resilient businesses offering clear operational improvement opportunities continuing to attract private equity capital.
The firm also warned that sustained recovery in exits would be important for returning capital to investors and supporting future fundraising activity, which remains concentrated among larger managers with established distribution records.
