Global private equity outlook 2026: Exploring new investment direction

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.

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

2026 will be defined by "execution capability." GPs who quantitatively substantiate their investment narratives will lead the market’s
restructuring and sustaining long-term growth.

Joong-Hwan Na Partner, Head of FAS