Private Equity Pulse 2025: Exit Surges, Capital Resilience, and the Path Ahead
Mid-Year Momentum: A Wave of Exits
In the first half of 2025, PE exits soared to their densest in three years, with 215 major transactions tallying $308 billion globally—a landmark since H1 2022. Corporate buyers played a prominent role, and sponsors showed notable flexibility in valuations to facilitate exits of long-held assets.
In the U.S., the picture was even more pronounced: 286 PE-backed exits worth $193 billion, marking a 72% year-over-year increase. Secondary deals accounted for 38% of exit value
2024 Highlights: Resilience in Tough Terrain
McKinsey’s Global Private Markets Report 2025 depicted a challenging 2024. Fundraising plummeted to the lowest levels since 2016, and dealmaking remained subdued. Still, bold moves emerged:
Capital deployment rose as firms adapted to elevated interest rates.
Distributions to LPs outpaced capital calls for the first time since 2015.
LP sentiment remains bullish—30% plan to raise their private-market allocations.
PE Recovery in Sight—but Not Full Strength Yet
According to Bain's 2025 Private Equity Report, the industry shows signs of life:
Deal activity and exits have rebounded from 2023–2024 dips.
Yet, fundraising remains sluggish—favoring firms with clear strategies and demonstrated performance.
What’s Driving the Momentum?
Deferred exits are being prioritized, especially for assets held past optimal investment periods.
Corporate buyers are re-entering the marketplace with renewed confidence.
Despite fundraising challenges, LPs’ long-term confidence in private markets remains high, buoyed by resilient distribution performance.
Strategic Implications for PE Stakeholders
Final Thought
Private equity is staging a cautious resurgence. Exits are back in flux, deals are picking up, and investor confidence endures—especially among disciplined, strategic funds. Yet, headwinds around fundraising and valuations persist.
Want to ensure your PE strategy leads—not follows—in this phase of renewal? Our advisory team can help sharpen your strategy, execution playbook, and LP return model for this turning point.