Q2’25 Pulse of Private Equity: U.S. and global investment trends
A KPMG quarterly analysis of global private equity activity
Overview
Private Equity (PE) investment activity was somewhat muted in Q2’25, with proposed PE investment of $363.7 billion across 3,769 deals — down from $505.3 billion across 4,527 deals in Q1’25. Ongoing uncertainties related to tariffs, global trade, and supply chains, saw many PE investors holding back from signing deals despite a sustained volume of deals activity, particularly in the U.S.. Dive into the details to discover how key sectors are performing, the notable transactions that have shaped the market, and what the future holds for private equity in the second half of 2025.
Dive into our thinking:
Q2 2025 Pulse of Private Equity report
Download PDFU.S. insights
1
U.S. attracts seven out of ten largest PE deals quarterly
Notable transactions included Blackstone Infrastructure’s $11.5 billion buyout of TXNM Energy, Thoma Bravo’s $10.5 billion acquisition of Boeing’s Digital Aviation Solutions (including Jeppesen for $6 billion), 3G’s $9.4 billion take-private of Skechers USA, Brookfield Infrastructure Partners’ $9 billion buyout of Colonial Pipeline, Silver Lake’s $4.5 billion acquisition of Intel’s stake in Altera, and a $4.4 billion joint venture buyout (including Brookstone Infrastructure and GATX) of Wells Fargo’s rail assets.
2
Amid trade uncertainty, U.S. PE activity still high but few investors willing to commit
Q2’25 began with the announcement of Liberation Day tariffs in the U.S., causing market uncertainty as companies and investors assessed potential impacts on trade policies, supply chains, and business activities. Despite this, the U.S. saw significant PE book activity, though investors largely held back from deal commitments or signings, preferring to wait and see how the tariff situation would evolve.
3
Energy remains big ticket sector for PE investors in the U.S.
Energy attracted significant PE attention in the U.S. in Q2’25, with Blackstone Infrastructure’s $11.5 billion buyout of TXNM Energy and Brookfield Infrastructure’s $9 billion buyout of Colonial Pipeline. Despite some downward momentum in sustainability and ESG, energy and energy transition companies remain robustly interested due to projected demand, especially for AI innovations.
4
PE exits in U.S. strengthen considerably
In the first half of 2025, PE exits rebounded, with $318.97 billion in exit value, nearing 2024’s $373.1 billion. The U.S. saw 476 exits, fewer than 2024’s 1,302, indicating larger, high-quality asset exits. IPO exit value—$91.6 billion—almost doubled 2024’s annual total. Also strong were corporate and strategic acquisitions, reaching $154.9 billion, compared to $205.1 billion in 2024. Secondary buyouts stood at $72.5 billion, compared to $120.1 billion seen during 2024.
5
Infrastructure funding well ahead of last three years, driven by interest in AI
In the first half of 2025, U.S. PE investment in infrastructure reached $31 billion, ahead of recent years and nearing 2021’s record of $65.9 billion. AI has fueled interest, with PEs focusing on data centers and digitalization. This trend is expected to continue due to the strong emphasis on AI development and the need for supporting infrastructure.
The healthcare industry is exploring investment by private equity as a result of the trend towards funding constraints and restrictions, as well as executive orders to reduce high prescription drug prices, even as they look to embrace new opportunities and technologies to improve operations and patient care. The industry will be looking for additional avenues of revenue and opportunity — which will help renew PE interest in the space and, in turn, investment.
Glenn Mincey
U.S. Head of Private Equity, KPMG in the U.S
Global insights
1
Global private equity activity slows despite U.S. mega deals
Global PE investment was muted in Q2’25 due to trade policy uncertainties. However, the availability of dry powder, hopeful exit activity, and strong sectors like energy, infrastructure (including AI infrastructure), and healthcare offer optimism for a recovery in the second half of 2025 once trade clarity emerges.
2
Increasing shift away from globalization towards regionalization
Given geopolitical tensions, tariff uncertainties, and supply chain concerns, PE dealmaking has shifted to a more regionally focused approach. Investors are targeting domestic or regional companies to manage trade risks. Sectors like healthcare and biotechnology saw solid traction in Q2’25, while automotive and manufacturing faced reduced interest due to cross-border dependencies. Global assets are still considered, but only the highest-value ones.
3
Investors watching for positive signals
While caution persists, investors will be watching closely for positive signals from the U.S. administration, greater clarity around interest rate policy from the Federal Reserve, and continued signs of corporate strength. These indicators could help unlock greater confidence and spur more consistent deal activity in the second half of the year.
4
Strong interest in AI
On the AI front, both data centers and related connecting infrastructure will likely see strong interest over the remainder of the year, particularly given the regional nature of many of these investments.
5
In exits, IPO market an area to watch
A slight upswing in PE exit activity is expected to continue over the next quarter or two, driven partly by forced sales due to capital return pressures. The IPO market’s improvement, particularly in the U.S., is a key area to watch. Renewed IPO activity could provide alternatives to private sales, leading to more dual track exits in the second half of 2025.
Global PE investment was somewhat muted in Q2’25 as PE investors held back, waiting for more clarity around U.S. trade policies. But the availability of dry powder among PE firms, the hopeful upswing in exit activity, the strength of resilient sectors like energy, infrastructure — including AI infrastructure — and healthcare, provides some optimism that PE investment will recover in the second half of the year once trade uncertainties settle.
Gavin Geminder
Global Head of Private Equity, KPMG International
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