The U.S. private equity market has shown resilience, with a significant surge in deal activity during the third quarter of 2025, despite the uncertainties and volatility of the previous quarters.
Deals Surge As Rates Ease
The deal value for the U.S. private equity market soared to $331 billion, a 28% increase from the previous quarter and a substantial 38% rise year-over-year, as per a HarbourVest report.
The deal count also rose by 3.7% from Q2 and nearly 12% from Q3 2024. The financing conditions have been a significant tailwind, with interest rate cuts in September and October reducing acquisition costs.
As per HarbourVest, private equity managers have stayed disciplined on valuations, with the average U.S. EV/EBITDA buyout multiple declining to 12x from 12.8x in 2024, bringing it closer to pre-pandemic norms. While the year began strongly, exit value dropped 41% in Q3 compared with Q1, totaling $126 billion. Even so, U.S. exit values through the end of Q3 had already surpassed the full-year total for 2024.
Private Equity Rally Signals Renewed Confidence
The confidence of the U.S. private equity market is evident from the synchronized rally of private equity titans, including KKR (NYSE:KKR), Apollo Global Management Inc., and Blackstone Inc., ahead of a widely expected Fed rate cut. This was followed by a strong performance in the stock market, reflecting investor confidence in the U.S. market.
Additionally, the private equity giant Partners Group Private Equity is gearing up for one of its largest shareholder-return programs in years, fueled by a series of successful exits. However, the private equity trend of continuation vehicles (CVs) has seen a high-profile failure, with major financial institutions poised to lose a combined $1.4 billion on an investment in a portable toilet rental company.
Landmark deals, including the $55 billion take-private of Electronic Arts (NASDAQ:EA) by a global investor consortium, highlight the market’s size and investor conviction. Infrastructure investments—particularly in digital assets and energy transition projects—are also accelerating, drawing substantial private capital.
Liquidity, AI To Fuel Private Markets In 2026
U.S. is set to enter 2026 with accelerating private equity dealmaking, the rise of private credit as a core financing source, and strong capital inflows into infrastructure such as data centers and energy.
Liquidity will remain the key theme for private markets in 2026, shifting from short-term stress to long-term structural change. Investors are expected to focus on scalable, differentiated AI platforms, while private markets broaden access through new investment vehicles offering varied liquidity and entry points for a wider range of investors.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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