Q3’25 Pulse of Private Equity — U.S. and global investment trends
A KPMG quarterly analysis of global private equity activity
Overview
The Private Equity (PE) market globally saw $1.5 trillion in investment in the first three quarters of 2025, including $537 billion in Q3’25 — a very solid amount considering the continued softness in deal volume globally and in all three key jurisdictions. Three very large public-to-private transactions in the US helped buoy these results (Electronic Arts — $56.4 billion, Air Lease — $28.2 billion, Dayforce — $12.4 billion). 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 remaining half of 2025.
Dive into our thinking:
Q3 2025 Pulse of Private Equity report
Download PDFU.S. insights
1
Q3’25 PE investment in the U.S. hits $300 billion — first time since Q1’22
During Q3’25, the U.S. attracted a 14-quarter high of $300.1 billion in announced PE investment, highlighting the significant resilience of the U.S. market despite stagnating deal volumes and the lingering impacts of rate volatility, tariff uncertainties, and caution related to valuations and financing. The buoyant investment was driven primarily by a handful of large, high-value transactions.
2
U.S. attracts a fresh swell of $10 billion-plus deals
In Q3’25, the U.S. saw several large PE deals, including the $54.7 billion take-private of Electronic Arts, the $28.2 billion acquisition of Air Lease, and the $12.4 billion purchase of Dayforce. KKR and CPP Investments also bought a 45% stake in Sempra Infrastructure for $10 billion. These deals have bolstered 2025’s PE results, with deal value at $827.8 billion by Q3, nearly matching 2024’s total despite lower deal volume.
3
Median deal sizes in the U.S. grow substantially in 2025
As of Q3’25, median deal sizes in the U.S. have surged to $350 million for buyouts, $201 million for M&A, and $21 million for PE growth deals. This growth is driven by a focus on top-end deals, more $1 billion-plus buyouts, and private-to-public transactions. Abundant dry powder and strategic investments in sectors like AI and energy further boost these figures.
4
Add-on deals a key focus for PE investors
Add-on deals remained a priority for U.S. PE investors, reaching $267.6 billion by Q3’25 and on track to surpass 2023 and 2024 levels. This focus reflects an efficient strategy to scale businesses and create value amid financing constraints and market concerns.
5
TMT, consumer & retail, financial services and healthcare see solid PE deal flows
TMT led U.S. PE investment with $285.9 billion by Q3’25, surpassing recent years. Consumer & retail followed at $107.8 billion, exceeding 2024 levels, driven by premium brands and logistics-adjacent businesses. Healthcare saw $73.5 billion, with tech-enabled care and carveouts. Infrastructure investment reached $65.1 billion, likely due to AI, data centers, and energy demand. Automotive investment dropped to $10.1 billion, down from $21.3 billion in 2024, due to supply chain issues and margin compression.
6
Exit deal flow in U.S. already at four-year high at end of Q3’25 as IPO market in U.S. sees door opening
As of Q3’25, U.S. exit value reached $485.5 billion across 846 exits, surpassing 2022-2024 totals. However, deal volume was lower, with 846 exits compared to 1,362 in 2024. Public listings contributed significantly, with exit value more than doubling to $111.7 billion from 2024’s $44.1 billion.
Trends to watch for in Q4’25
AI, digital, and energy infrastructure are expected to attract more U.S. PE investment. Healthcare services and healthtech will remain robust, and fintech may see increased activity, especially in payments. Despite improved exits in 2025, significant locked capital will likely keep fundraising subdued until a more sustainable exit flow is established.
While deal volumes have declined significantly over the course of 2025, private equity deal flow has remained quite resilient as sponsors have focused on large, high-conviction transactions. I’d characterize market conditions as optimistic — but in a measured way, with robust top-end activity but more selective caution within the mid-market.
Donald Zambarano
U.S. Head of Private Equity, KPMG in the U.S.
Global insights
1
Secondaries market remains robust
Unable to achieve desired valuations for high-quality assets, PE firms are increasingly using continuation vehicles and secondary funds to provide exit options for investors. This trend, including the rise of tertiary funds, is expected to continue across regions.
2
Global fundraising activity remains very subdued
Global fundraising in Q3’25 was the slowest in a decade, with only 393 new funds and $314.1 billion raised. Large PE firms dominate, with 78% of funds over $1 billion. Though some PE investments are robust, the market remains sluggish and needs more deal activity and exits to recover fully.
3
Geographical diversification becoming important in new world order
Cross-border PE deals in 2025 have reached $750 billion across 4,849 deals by Q3, nearly matching 2021's high. Global investors seek high-quality, resilient assets, while de-globalization and focus on domestic industries push PE firms to diversify investments and supplier bases to align with target markets.
4
Infrastructure seeing big pickup in investment, driven primarily by AI
The TMT sector led PE investments with $469 billion by Q3’25, but infrastructure and transport saw significant growth, reaching $126.3 billion, surpassing 2023-2024 levels. This increase is driven by AI infrastructure, particularly data centers. Energy sector investments also rose, while consumer and retail investments exceeded 2024 levels in the U.S. and India despite market challenges.
5
PE to PE add-on transactions seeing more scrutiny
Add-ons contributed $475 billion in global PE deal value by Q3’25, on track to match or exceed 2024 levels. This tactic remains strong in software, technology, business services, and healthcare, but PE investors are now applying more scrutiny to PE-owned assets.
6
PE exit environment improving, but far from where it needs to be
Globally, PE exit value reached $832 billion by Q3’25, nearly matching 2024’s $887 billion and on track to be the second-best year in a decade after 2021. However, exit volume remains low at 2,155, a decade-low. Public listings saw a high of $198.7 billion, driven by the U.S. and Asia, while EMA remains constrained.
Trends to watch for in Q4’25
PE market activity is expected to improve in Q4’25 and beyond, driven by declining interest rates and reopening IPO markets in the U.S. and Asia. AI infrastructure will likely see significant investment, and government spending on defense, infrastructure, and technology autonomy may encourage further PE investment, though this trend may take time to develop.
We’re seeing a polarization of how business gets done in the new world order. Having geographic diversification is a theme that seems to be becoming more important. If you want to sell into domestic markets, you better have domestic assets, and you’d better also diversify your supply base and all the rest of your business. The focus on cross-border deals is a reflection of that to me.
Gavin Geminder
Global Head of Private Equity, KPMG International
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