KPMG Pulse of Private Equity Q1'25

We are excited to share KPMG’s Pulse of Private Equity Q1 2025 report. This inaugural edition provides insights into private equity activity. What is this report about? The KPMG Pulse of Private Equity offers a detailed analysis of global private equity trends and investments, captured through our methodology which is designed to cover all significant aspects of major PE deals. In this report, we dive deep into the factors affecting the market, movements in capital, and sector-specific insights that shape private equity investments in the current economic climate. In this quarter’s edition, we examine a number of global and regional trends, including:

• the evolving trade tensions, including concerns around tariffs;
• the further delay in expected IPO exits;
• the focus on value creation and tech-enablement;
• the continued focus on take-private deals and carve outs;

• Global PE activity fell from $463.8 billion across 4,958 deals in Q4’24 to $445 billion across 3,762 deals in Q1’25.
• The Americas saw PE activity rise from $239.8 billion across 2,349 deals in Q4’24 to $287.1 billion across 1,868 deals in Q1’25; the US drove the majority of this increase with PE investment in the country rising from $210 billion across 2,113 deals in Q4’24 to $234.2 billion across 1,670 deals in Q1’25.
• The EMA region saw PE investment drop from $169.7 billion across 2,184 deals in Q4’24 to $109.2 billion across 1,555 deals in Q1’25, while in the ASPAC region it rose somewhat from $29.1 billion across 288 deals in Q4’24 to $37.5 billion across 226 deals in Q1’25.
• The EMA region saw PE investment drop from $169.7 billion across 2,184 deals in Q4’24 to $109.2 billion across 1,555 deals in Q1’25, while in the ASPAC region it rose somewhat from $29.1 billion across 288 deals in Q4’24 to $37.5 billion across 226 deals in Q1’25.
• Global PE exit size in Q1’25 was $269.7 billion across 599 deals including $108.8 billion in corporate/strategic acquisitions, $63.1 billion in secondary/sponsor-sponsor buyouts, and $97.9 billion in public listings.
• Global PE fundraising was $98.4 billion across 124 funds at the end of Q1’25, well off the pace needed to match 2024’s $508.2 billion across 614 funds.

As Q2’25 begins, lingering tariff uncertainties, reciprocal trade actions, and broader geopolitical tensions are expected to weigh on global private equity deal activity. While this environment may lead to a slowdown in transactions, it could also present opportunistic buying opportunities for PE investors willing to navigate volatility. In the near term, deal flow is expected to concentrate in sectors more resilient to tariff shocks such as business services, infrastructure, healthcare, and domestically focused businesses. Once there is greater clarity around government policies, investor confidence is likely to rebound, potentially setting the stage for a recovery in dealmaking in the second half of 2025.

Until then, many investors may remain cautious. Meanwhile, the exit market remains a critical area of focus. While demand for exits is rising across all regions, continued market turbulence particularly in the IPO space will likely keep public listings subdued through mid-year. Mounting pressure from LPs to return capital could result in forced exits at less-than-ideal valuations, particularly for funds nearing the end of their investment horizon. In the longer term, PE investors are expected to show increasing investment flexibility as they continue striving to deploy capital. I encourage you to download and read the full report to gain a deeper understanding of these topics and how they can be applied to your own strategy.

Danny Bosker
Partner, Mergers & Acquisitions
KPMG in the Netherlands