Global private equity market remains selective – Germany shows positive momentum at year-end
Results of the „Pulse of Private Equity Q3 2025“
Results of KPMG's "Pulse of Private Equity Q3 2025" show fewer transactions but high valuations for quality assets:
- Global private equity volume reaches USD 1.5 trillion in the first three quarters of 2025
- EMA region (Europe, Middle East, Africa) second strongest region worldwide with USD 178 billion in the third quarter – Germany with stable but selective activity
- Global exit activity picks up slightly, IPO window in Europe remains closed for the time being
- India stands out within the EMA region as a growth market with an open IPO window
Berlin, 5th November 2025
In a continuing challenging economic environment, global private equity activity remained robust in the third quarter of 2025. According to the latest "Pulse of Private Equity" report from KPMG International, global investment volume reached approximately USD 1.5 trillion in the first three quarters, including USD 537 billion in the third quarter – despite a significant decline in global transaction activity to 4,062 deals compared to 5,070 in the same quarter last year. The US recorded a historically high investment volume of USD 300.2 billion in the third quarter – the highest in 14 quarters.
Germany and Europe also showed stable developments, supported by high liquidity and an improved macroeconomic situation. In the EMA region, the investment volume in 2025 totaled USD 474.2 billion from Q1 to Q3 (Q3: USD 178.3 billion); Germany contributed to the overall result in the third quarter with 138 deals and USD 15.2 billion. This puts the region close to the total investment volume for 2024 (USD 647 billion). However, the number of transactions continued to decline, with 1,736 deals announced in the third quarter compared to 2,168 in the same quarter last year, the lowest level in almost five years. This confirms an ongoing trend: high valuations continue to be paid for high-quality companies, but their limited supply is increasingly intensifying competition for first-class assets.
Focus on future-oriented industries and high-quality assets
Even though private equity activity in Germany and Europe remains subdued, confidence is growing in the German and European private equity market, especially with regard to the coming months. Financing conditions are improving, the large-cap segment is recovering, and investors are increasingly focusing on the growth areas of infrastructure, energy, and defense - segments that are gaining importance thanks to government programs and technological innovations. At the same time, we are seeing a continuing run on high-quality assets, which continue to command high valuations despite the overall subdued market.
This positive development is also contributing to the changed perception of private equity . PE investors are increasingly establishing themselves as reliable transformation partners – both in carve-outs from large corporations and in family-run companies. Especially in an environment of structural change, financial investors are increasingly taking on an active role in the strategic realignment and growth security of medium-sized companies.
Exits: Focus on strategic buyers
The global exit market also showed initial signs of recovery, albeit at a low level. Worldwide, the exit value at the end of the third quarter amounted to USD 832 billion for around 2,155 transactions—the lowest level in over ten years. In the EMA region, however, exit activity remained weak in the third quarter: the exit value was USD 220 billion with over 936 deals (end of Q3 2025) – after USD 340.5 billion with 1,675 transactions in 2024 as a whole.
In Germany and Europe, exits are currently predominantly to strategic buyers from the corporate sector, while the IPO market is still waiting for larger IPOs. "Exit activity remains subdued in Europe," says Tilman Ost, EMA Head of Private Equity and Global PE Advisory Leader at KPMG. "Many eyes are now on the IPO market. When the window opens again there will be crucial in enabling more exits in the region."
Two German deals in the top 10 in the EMA region
In Germany, the sale of a majority stake in Kelvion, a global provider of energy-efficient heat transfer and cooling solutions, ranks among the largest transactions of the third quarter. The deal ranks eighth among the ten largest deals in the EMA region during this period. Also in the top ten is the planned sale of Continental's ContiTech Original Equipment Solutions (OESL) business area to private equity investor Regent, which ranks ninth.
India moves into focus in the long term
India is developing particularly dynamically within the EMA region. The market is benefiting from robust macroeconomic conditions and a growing number of investments. The IPO window is wide open there, supported by strong stock market performance and high valuations in sought-after sectors. These market conditions have led to more and more private equity firms seeking IPOs for Indian portfolio companies, especially those with strong ties to the Indian market. Looking ahead to 2026, India is expected to remain one of the most attractive growth markets for private equity.
For more information and the full results of the Pulse of Private Equity, visit our global topic page: Q3’25 Pulse of Private Equity — Global insights
Press Contact
KPMG AG Wirtschaftsprüfungsgesellschaft
Lisa Meier
T +49 89 9282 6632
lisameier@kpmg.com
www.kpmg.com/de