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 players are demonstrating remarkable adaptability in this still uncertain world. After an extended phase of constrained activity, vendors and buyers show signs of a cautious willingness to close deals, albeit in a more selective and disciplined form. This shift signals the market is resetting expectations, with investors assessing the fundamentals and capital deployed with greater precision.”

Matthieu Boyé Associé - Group Head of Private Equity

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

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

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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