Private equity, 2025 is the second best year ever for deals

European private equity exit activity posted its second best year ever, with the value of divestments in the second half of the year doubling compared to the first, thanks to several large transactions. There were 1,336 investment exits with a total value of USD 299.8 million. 'Regionally, the UK and Ireland, along with Southern Europe, had a particularly strong fourth quarter,' notes Moura.

European fundraising has slowed down, in line with the global trend after two consecutive record years. "Currently, capital raised in Europe is at its lowest in the last decade for 2025, although fundraising data can be patchy. The slowdown reflects fewer megafunds closing in Europe, against a greater focus on the mid-market segment," notes the PitchBook analyst. The UK has led this trend, contributing more than 50 percent of European fundraising since the beginning of the year.

In the US, 2025 proved to be a year of solid resilience for investment activity: "Despite some uncertainty in the first half of the year, activity accelerated in the second half, allowing 2025 to close with a 5.8% annual increase in the number of deals and 30.8% in value, for more than 9,000 deals announced or completed and a total value close to $1.2 trillion," points out Kyle Walters, PE analyst at PitchBook, who continues: "This is only the second time in the history of the asset class that deal value has crossed the $1 trillion threshold, returning to activity levels similar to the 2021 peak."

Exit activity was also particularly robust, marking another year of strong growth. As for investments, no divestments of this magnitude have been observed since the peak of 2021: the number of exits stood at 1.288 for a value that jumped an extraordinary 92 per cent to $727 million, "supported by a number of notable transactions, including several IPOs, demonstrating a renewed influx of assets to the market from investors," notes Walters, who adds: "Both investment and exit activity ended the year with momentum, positioning the private equity ecosystem for a sustained growth phase in the near future as well, supported by an improving macroeconomic environment, characterised by multiple rate cuts by the Federal Reserve and increased market visibility."

To close in the US, inflows remained the weakest link in the asset class throughout the year, with $277.9 billion raised through 327 funds, down 27.2 per cent and 51 per cent year-on-year, respectively. "Should strong exit activity continue, inflows could benefit from an improvement in 2026, although the impact would likely only be seen in the second half of the year," Walters explains.