Private Equity Deal Value Surges Past $1.2 Trillion in 2025, According to Cherry Bekaert's Annual PE Industry Report

RALEIGH, N.C., Feb. 25, 2026 /PRNewswire/ -- Cherry Bekaert (the Firm) has published its fifth annual year-end Private Equity (PE) Industry Report, detailing the market forces and strategic shifts that propelled private equity's 2025 M&A deal value to more than $1.2 trillion. This marks only the second time in history that buyout activity has crossed the trillion‑dollar threshold, trailing only the record levels of 2021.

Featuring data provided by Pitchbook and other sources, including proprietary Firm insights, the report analyzes the PE mergers and acquisitions (M&A) landscape while highlighting sector trends shaping opportunities for funds, investors and financial sponsors in 2026.

Despite a tariff-induced slowdown early in the year that prompted many investors to pause dealmaking, activity rebounded in the second half as economic clarity improved and risk appetite returned. By year-end, PE activity skyrocketed ahead of 2024, with most metrics signaling sustained momentum for 2026.

Key findings from the report include:

• Megadeals (transactions exceeding $1 billion) reached a record $568 billion in value across 150 deals
• Exit activity surged with double-digit growth, breaking years of stagnation
• Add-ons remained the dominant strategy, though easing interest rates may support increased platform buyout activity
• Corporate divestitures of non-core assets created attractive carve-out opportunities for PE buyers
• Fundraising continued its decline, marking the weakest year since 2020
• Dry powder reached approximately $1.1 trillion, underscoring the imbalance between robust deal activity and subdued capital formation

"After navigating a turbulent few years, PE leaders are ready for a breakout 2026," says Scott Moss, Partner and Financial Services Industry Leader. "A pro-business climate and falling rates are boosting confidence, but success requires more than just showing up — funds must boldly evolve their strategies to capitalize on this window of opportunity."

The report's 2026 outlook anticipates a period of renewed momentum and structural evolution following several years of market recalibration. With improving market conditions, private equity firms are placing greater emphasis on operational value creation, digital transformation and AI-driven efficiencies rather than relying primarily on leverage.

Read the full report here.   

About Cherry Bekaert
Cherry Bekaert, ranked among the largest assurance, tax, and advisory firms in the U.S., serves clients across industries in the U.S. and internationally. Cherry Bekaert Advisory LLC and Cherry Bekaert LLP (Cherry Bekaert) provide professional services through an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. Cherry Bekaert LLP is a licensed independent CPA firm that provides attest services to its clients. Cherry Bekaert Advisory LLC and its subsidiary entities provide tax and business advisory services spanning the areas of accounting advisory, ERP consulting, finance modernization, outsourcing, recruiting and staffing, risk and cybersecurity, and transaction advisory. Cherry Bekaert Advisory LLC and its subsidiary entities are not licensed CPA firms. For more details, visit cbh.com/disclosure.

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