US private equity firms are set to post a second year of recovery in exit activity, with total realised value in 2025 already surpassing last year, according to a report by Reuters citing new data from PitchBook. Buyout firms completed roughly 1,300 exits through October, generating an estimated $621.7bn, compared with 1,369 exits worth $379.6bn across the whole of 2024.
Deal activity accelerated sharply in the third quarter, reaching levels not seen since late 2021 and early 2022, PitchBook analyst Kyle Walters said. However, median holding periods continue to rise, standing at 3.9 years compared with three years in 2022, while around 30% of private equity-backed assets are now seven years old or more.
Despite improving exits, fundraising remains under pressure. Total capital raised is expected to fall in 2025, with 46% of commitments captured by the 10 largest firms as of end-October, up from 35% in 2024.
First-time fund managers continue to face the most severe headwinds, with 2025 on course to mark a new record low for debut funds raised, below even 2024 levels.
