Dechert Finds GPs Unlocking Liquidity to Power Investor Opportunity Amid a Gradual Market Thaw

NEW YORK, Dec. 2, 2025 /PRNewswire/ -- Dechert LLP announced today the release of its eighth annual Global Private Equity Outlook, produced in partnership with Mergermarket. The report finds that strong year-over-year gains in buyout and exit values are fueling general partners' (GPs) confidence in private equity's trajectory over the next 12 months, even amid evolving U.S. trade policies, political stasis in key European markets, and a complex geopolitical backdrop. As the gradual market thaw continues, GPs are emphasizing liquidity solutions and flexible capital strategies to help investors seize opportunities.

Notable key findings, based on responses from senior executives at private equity firms across North America, EMEA and APAC, include:

• Geopolitical uncertainty: 49% of respondents cite geopolitical conflicts as a broad macroeconomic factor expected to have one of the biggest influences on the deal environment over the coming 12-18 months. At a regional level, however, 65% of EMEA executives see them as one of the main challenges to dealmaking, compared to only 30% of APAC respondents.
• Returns: 17.1% is the 2025 returns estimate from EMEA and North American respondents, while APAC respondents estimate a slightly higher 17.4%, reflecting more optimism about the returns outlook for the industry than a year ago.
• Valuations: 48% of GPs favor earnouts to help close valuation gaps. In APAC, that number is even higher at 60%.
• Sector preferences: 75% of survey participants expect to invest in life sciences (including healthcare) over the next 24 months. Almost as many (74%) state that they will invest in technology.
• Co-investment: 52% of respondents have a co-investment program, with 51% across all regions offering their LPs co-investment opportunities in private credit loans obtained by portfolio companies.
• Fundraising: 64% of respondents are expanding into additional investment strategies to mitigate fundraising pressures.
• GP-led secondaries: 46% of respondents are utilizing GP-led secondaries or continuation vehicles to facilitate distributions to existing LPs and mitigate potential fundraising challenges in the absence of traditional asset selloffs – almost double the number of respondents than in last year's survey.
• GP-stake divestitures: 77% of survey participants plan to make a GP-stake divestiture in the next 24 months - double the proportion that had these plans a year ago.
• Antitrust issues: 47% of survey participants expect a negative impact from the "politicization" of merger control enforcement.
• Democratization of PE: 73% of respondents expect at least 10% of their next fund to come from retail investors.
• Private credit: 57% of GPs are using private credit for refinancing and recaps at the portfolio level, making it the most common use case among respondents.
• Fund finance: 36% of respondents expect fund finance to increase in the next 12-18 months. One year ago, only 2% anticipated an increase.

"Momentum is building as sponsors unlock liquidity and redeploy capital through innovative structures," said Dr. Markus P. Bolsinger, co-head of Dechert's global private equity practice. "Earnouts, continuation vehicles, portfolio-level private credit and expanded fund finance are now core tools to bridge valuation gaps, enhance DPI and widen the investor base, which includes retail. At the same time, geopolitics and the politicization of merger control demand seasoned counsel across jurisdictions. Engaging experienced advisors early is critical to advancing complex transactions and safeguarding outcomes in such a dynamic regulatory environment."

As the industry heads into 2026, the report underscores how GPs are adapting with flexible capital solutions, disciplined sector selection and proactive liquidity strategies, all signs of a market continuing to evolve and strengthen despite external headwinds.

The 2026 Global Private Equity Outlook is available for download on Dechert's website.

About Dechert's Global Private Equity Practice
Dechert has been at the forefront of advising private equity firms for over 40 years and ranked among the top law firms for U.S. and Global PE Buyouts and Global M&A by Bloomberg, Mergermarket and Refinitiv. With more than 350 private equity and private investment clients, we have unique insights into how the industry has evolved and where it's going next. Our global team advises private equity, private credit and other alternative asset managers on flexible solutions at every phase of the investment life cycle.

About Dechert
Dechert is the law firm that helps business leaders lead. For more than 150 years, we have advised clients on critical issues – from high-stakes litigation to first-in-market transaction structures and complex regulatory matters. Our lawyers in commercial centers worldwide are immersed in the key sectors we serve – financial services, private capital, real estate, life sciences and technology. Dechert delivers unwavering partnership so our clients can achieve unprecedented results.

Methodology: In July 2025, Mergermarket, on behalf of Dechert LLP, surveyed 100 senior-level executives at different private equity firms based in North America (45%), EMEA (35%) and Asia-Pacific (20%). In order to qualify for inclusion, the firms all needed to have US$2.5 billion or more in assets under management, and respondents could not be first-time fund managers. The survey included a combination of qualitative and quantitative questions, and all interviews were conducted over the telephone by appointment. Results were analyzed and collated by Mergermarket, and all responses are anonymized and presented in aggregate.

SOURCE Dechert LLP