Global private equity outlook 2026: Exploring new investment direction

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Exploring new investment direction

Our 2026 private equity report captures how private equity leaders around the world are adapting to a market defined by stabilisation, selective recovery and tighter execution. As financing conditions remain constrained, firms are shifting focus from deal volume to value creation, organic growth, operational influence and disciplined capital deployment. Technology-led transformation, selective cross-border investment and sector specialisation are shaping where capital flows and how returns are generated. This report provides a data-driven perspective on the strategies, sectors and operating models that will define private equity performance in 2026.

• 800private equity professionals
• 7regions

"Private equity professionals are showing impressive flexibility in today’s unpredictable environment. Following a prolonged spell of limited activity, both sellers and buyers are beginning to cautiously move forward with transactions, though they are doing so with greater selectivity and discipline. This development indicates that the market is recalibrating its expectations, as investors now scrutinise fundamentals and the allocation of capital with heightened accuracy. While direct investments in technology businesses continue to rise, technology and AI are no longer standalone themes - they are embedded enablers of value creation across every sub sector. Whether in TMT as the most targeted sector or energy, infrastructure, industrials or services, the winners are using data, automation and AI to drive better investment decisions, operational performance and exit outcomes. In today’s market, technology is not a sector choice; it is a core capability." Brad Purvis, Partner, Forvis Mazars Australia

Market outlook for private equity

• 28of private equity portfolios performed above plan
• 58of private equity firms invest in the technology, media and telecommunications industry
• 67of private equity firms consider market, geopolitical and other external trends as a top challenge

"From a private equity perspective, Australia remains a highly attractive destination for international capital, supported by a stable economy, a transparent legal framework and liquid capital markets. Successful outcomes, however, depend on disciplined execution - understanding tax, navigating cultural differences and structuring cross border investments in a way that supports value creation and exit optionality." Maximilien Amphoux, Partner, Forvis Mazars Australia

The 2026 private equity market is shaped by tighter execution shifting financial conditions and a strong focus on technology and international growth. Firms are adapting strategies to prioritise operational influence and value creation while navigating evolving capital structures and timing pressures. 

• Execution is now the differentiator: private equity firms are shifting away from scale and deal volume towards hands-on value creation. The strongest performers are prioritising control, operational influence and clearly defined levers for growth across their portfolios.
• Portfolio performance is stabilising: returns in 2026 show continuity rather than disruption. Exit outcomes are broadly in line with last year, with fewer deals underperforming, signalling a gradual return of confidence as valuation gaps narrow.
• Financing is shaping how deals are built and exited: tighter credit markets are influencing capital structures, build-up strategies and exit timing. This is making disciplined deployment and creative financing increasingly important for investors.
• Cross-border investment is driving growth: international dealmaking remains a core growth engine, with firms expanding beyond domestic markets to access better opportunities, diversification and stronger returns.
• Technology is now central to value creation: technology-led investing has moved to the forefront globally. With TMT now the most targeted sector, digital capability, AI and tech-enabled operations are becoming essential tools for driving portfolio performance.

"In the energy and infrastructure sectors, capital is increasingly flowing to scalable platforms with contracted revenues and clear transition drivers - renewables, storage and grid linked assets in particular. Investors are prioritising build and optimise strategies over single asset exposure." Rickard Wärnelid, Partner, Head of APAC Financial Advisory and Energy

Private equity solutions at Forvis Mazars

We work with private equity firms across the full investment lifecycle, helping them unlock value from acquisition through to exit. Our team provides tailored support for due diligence, value creation, audit, tax and fund management, helping fast-moving, growth-focused businesses achieve their goals. With deep sector expertise and global reach, we guide clients through complex challenges such as regulatory change and operational transformation. By combining technical knowledge with commercial insight, we help firms unlock value, optimise performance and navigate transactions with confidence.

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