Global private equity enters selective recovery as strategy clarity and execution drive performance

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According to the “2026 Global PE Report” published by Forvis Mazars, one of the world’s leading global accounting and advisory firms, the global private equity (PE) market is showing gradual signs of recovery across overall performance indicators, including portfolio performance and fundraising, despite ongoing challenges following a prolonged period of adjustment. In this environment, clearly defined investment strategies, sector and deal-type specialization, and the ability to deliver tangible value creation at portfolio companies are emerging as the key differentiators of fund managers’ performance. The report is based on a survey of more than 800 private equity and investment professionals across North America, Europe, and the Asia-Pacific region.

The report notes that while the global investment environment is gradually stabilizing, the recovery is not broad-based as seen in previous cycles. Instead, capital is flowing selectively toward assets and strategies with the strongest investor conviction. Matthieu Boyé, Head of Private Equity at Forvis Mazars Group, commented: “Performance in private equity is no longer driven by market timing. It is determined by the clarity of investment strategy and the capability to execute it in a way that drives value creation.”

Survey findings show that growth capital remains the most favored investment strategy globally. The Technology, Media and Telecommunications (TMT) sector has overtaken financial services as the leading area of focus, reflecting a growing preference for sectors where growth trajectories and scalability can be structurally supported by digital transformation and technological adoption. As a result, the credibility of an investment thesis and the demonstrable potential for value enhancement have become central to investment decision-making in the global PE market.

The report further highlights that, in the past, returns were supported by leverage and multiple expansion, but those tailwinds are now more constrained – making value creation outcomes increasingly differentiated among general partners(GPs). GPs that articulate a clear investment rationale, pursue focused sector strategies, and demonstrate operational capabilities throughout the holding period are better positioned to deliver superior results. The extension of holding periods and the growing use of continuation funds also reflect this structural shift toward long-term value creation.

Although fundraising conditions remain challenging, capital from LPs has not dried up entirely. Rather, LPs are increasingly selecting GPs who can clearly articulate strategic clarity and the repeatability of performance. The report notes that “the key differentiator is not a new strategy, but the ability to consistently prove that the strategy can translate into tangible value creation.”

Similar trends are being observed in the Korean private equity market. Joong-Hwan Na, Head of Financial Advisory at Forvis Mazars in Korea, stated: “As in the global market, LPs in Korea are increasingly focused on clearly defined investment strategies and sector expertise. GPs equipped with dedicated operating teams, specialized capabilities in specific deal types (including carve-out transactions), or cross-border expansion expertise are gaining attention, particularly those able to substantiate their investment narratives and value-up strategies with concrete financial outcomes.”

The report highlights strategic focus, sector and deal-type specialization, and proven value creation capabilities as the core sources of competitive advantage in the global private equity market beyond 2026, and expects that only GPs that can demonstrate these strengths consistently will secure a competitive edge in the years ahead.

-ENDS-

Contact

Tae-Hee Kong, MarCom, Forvis Mazars in Korea
tae-hee.kong@forvismazars.com / +82 (0)2 3438 2457

About Forvis Mazars

Forvis Mazars is a leading global professional services network operating under a single brand with just two members: Forvis Mazars, LLP in the United States and Forvis Mazars Group SC, an internationally integrated partnership operating in over 100 countries and territories. Both members share a commitment to providing an unmatched client experience, delivering audit & assurance, tax, advisory, and consulting services across the globe. ​

About Forvis Mazars in Korea

Forvis Mazars Group SC is an independent member of Forvis Mazars Global, a leading professional service network. Operating as an internationally integrated partnership in over 100 countries and territories, Forvis Mazars Group specializes in audit, tax, and advisory services. The partnership draws on the expertise and cultural understanding of over 40,000 professionals across the globe to assist clients of all sizes at every stage in their development.

Forvis Mazars Sebit Accounting Corporation is an independent member firm of Forvis Mazars Group SC.

Visit forvismazars.com/kr to learn more.