Global private equity investment reached USD 1.5 trillion in the first nine months of 2026 as funds concentrated on larger deals, according to KPMG’s Pulse of Private Equity Q3 2026. The number of investments fell to 14,650, putting the market on course for potentially its lowest annual deal count since 2020, while exits totalled USD 985.2 billion.
Technology, energy and sectors that tend to hold up through economic cycles, such as healthcare, remain a focus for investors. Artificial intelligence is also influencing investment strategies by fuelling demand for power infrastructure and data centres.
The global private equity market remains active despite geopolitical uncertainty, high energy costs, inflation and elevated interest rates. Investors are more selective than in previous years, favouring assets with predictable financial performance and clear growth prospects.
Fewer deals, higher stakes
In the 12 months to the end of September, KPMG recorded 20,362 transactions worth USD 2.21 trillion. The rolling deal count was the lowest since the first quarter of 2021.
The median buyout was worth USD 101.7 million, while the average reached USD 725.5 million. The average was more than seven times the median, reflecting how strongly the biggest buyouts pulled it up.
First three quarters of 2026, USD million
Chart by CEO Magazyn Polska based on KPMG and PitchBook data, p. 17. Data as of 30 September 2026.
“The concentration of capital in fewer, larger deals shows how much investors now expect from assets coming to market. As those expectations rise, the quality and predictability of earnings, a company’s ability to generate cash flow, and the credibility of the assumptions behind its growth forecasts and valuation become particularly important. Pressure to exit investments makes it even more important to prepare companies for sale.
“In Poland, the quality of assets being brought to market varies, and relatively few companies meet funds’ high expectations. Third-quarter data also show that strategic buyers drove most of the increase in mergers and acquisitions, while private equity activity dipped slightly. Polish companies seeking an investor or preparing for sale should expect close scrutiny of their performance, growth prospects and the basis for their valuation. Reliable financial data, consistent management reporting and evidence that results are sustainable can materially affect both how the deal proceeds and the valuation it achieves.”
Rafał Wiza, Partner, Corporate Audit, KPMG in Poland
The Americas remain the largest market, accounting for more than half of global private equity investment. Funds deployed USD 854.6 billion there by the end of the third quarter, including USD 793.4 billion in the United States. Asia-Pacific recorded USD 137.8 billion across 1,109 transactions. KPMG said it was the only one of the three regions on track at the end of September to surpass its full-year 2025 totals for both deal value and volume.
Pressure to exit investments builds
About 2,200 exits generated USD 985.2 billion in the first three quarters. In the 12 months to the end of September, exit value rose to USD 1.4 trillion, the highest since the first quarter of 2022. The rolling exit count fell to 3,295, its lowest since the first quarter of 2021.
As investors press for returns on their capital, alternatives such as continuation vehicles and secondary transactions are becoming more common. Private equity funds raised USD 367.4 billion from investors in the first nine months of 2026. KPMG says smaller funds still have particular difficulty raising capital because institutions prefer large managers with proven track records.
AI drives interest in energy
Rapid growth in data centres is pushing up power demand and drawing capital into energy infrastructure. Energy and natural resources have attracted USD 243.3 billion, close to record levels. Technology, media and telecommunications remain the largest sector, with USD 479.1 billion in private equity investment.
First three quarters of 2026, USD billion
Chart by CEO Magazyn Polska based on KPMG and PitchBook data, Pulse of Private Equity Q3 2026. Data as of 30 September 2026.
Tax risks are shaping deals earlier
As investors become more selective, they are placing more weight on identifying tax risks early and structuring transactions accordingly.
“Private equity funds’ more demanding approach to new investments is making tax preparation more important. With high valuations and tighter financing conditions, investors are examining risks that could affect an asset’s value after acquisition and its eventual exit from the portfolio. This is especially important in carve-outs and buy-and-build strategies, where the deal structure, financing and arrangements between entities need to be carefully planned.
“Tax should be considered when the deal is being designed, well before closing. Identifying tax risks and consequences early can reduce uncertainty during due diligence and make it easier to integrate further assets and carry out the planned value creation strategy. Tax risk insurance is also becoming more important, particularly when a private equity fund is exiting an investment.”
Małgorzata Gleń, Partner and Head of M&A Tax, KPMG in Poland
Carve-outs and industrial investment gain ground
Global carve-out activity reached USD 182.2 billion across 1,254 deals by the end of the third quarter. KPMG says 2026 could record the second-highest annual total after 2021. Carve-outs increasingly involve successful business units that fall outside their parent companies’ future strategic priorities.
Industrial and defence assets are also attracting more attention. Manufacturing investment reached USD 122.6 billion and is approaching the record levels seen in 2021. Higher defence spending and growing interest in robotics and physical AI are among the factors driving the increase.
Investment slows in Europe, the Middle East and Africa
Private equity investment in Europe, the Middle East and Africa (EMA) reached USD 521.4 billion across 6,249 deals in the first nine months of 2026. That was below the pace needed to match the USD 784.3 billion recorded in 2025. The rolling 12-month total fell for the first time in more than a year, from USD 818.1 billion to USD 764.4 billion, although seasonal factors may have played a part. The region’s largest private equity deal in the third quarter was the USD 7.7 billion acquisition of listed Irish company DCC Energy.
The United Kingdom led investment activity in EMA with USD 165 billion since the start of 2026, and is on track for its highest total in five years with the deal count steady at 1,510. India is on course for record private equity investment after reaching USD 25.8 billion across 247 deals. Germany recorded USD 58.1 billion across 615 deals, slightly below its 2025 pace.
About the report
KPMG’s quarterly Pulse of Private Equity tracks global investment trends, deal activity, exits and fundraising, as well as the macroeconomic, geopolitical and sector developments shaping the market. The Q3 2026 edition focuses on larger deals, AI’s influence on investment strategies and growing interest in energy, manufacturing and automotive assets. It uses PitchBook data and a broad definition of private equity that covers completed, announced and pending transactions.
KPMG · Polish original published 4 November 2026.
