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| The Daily Pitch |
| PE, VC and M&A |
| Your edge on global private capital markets |
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| PE in 2026: Bigger LBOs, better exit routes |
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By Kyle Walters, PE Research Analyst
Market momentum has energized private equity this year, lifting it to levels not seen for years.
Looking ahead, the early signals from our first-ever PE Survey suggest investors are cautiously optimistic as they balance economic uncertainty against the promise that AI-driven efficiency and innovation can lift their portfolios, according to our 2026 US PE Outlook.
One clear takeaway: Platform LBOs are set to climb, with better visibility and record dry powder pushing their share of total PE deals from roughly 20% in recent years to 25%.
Exits have also come back to life, a welcome sight after several years of managers waiting on the sidelines. The exit lull means that more recent vintages, such as the 2021 cohort, have been stuck in limbo. |
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Sponsors need to bring these aging portfolio companies to market at a greater clip to kick the PE flywheel back into gear and process the inventory of companies acquired during the dealmaking heyday. Fully half of our survey respondents said exiting portfolio companies was the top priority over the next six months.
And if traditional exit routes continue to see better health, the robust continuation-fund-related exit activity of late could slow.
But even if this backlog of aging companies begins to wind down, it won't be fast enough to save the dwindling fundraising environment, which will likely result in PE managers consolidating and the top 10 funds capturing more than 40% of total capital raised in the US. |
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| Aeterra Workspace: A unified system for ESG, GHG, and EHS management |
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Full-service environmental and sustainability consultancy Aeterra provides ESG and sustainability services supported by its Aeterra Workspace platform. The system can be used for sustainability measurement, greenhouse gas (GHG) accounting, and environmental health and safety (EHS) management. Workspace offers a centralized environment where users can track compliance requirements, manage real-time ESG data, apply established emission factors for accurate GHG calculations, and produce standardized KPI reports for internal and external stakeholders. The platform is designed to support investment teams, operations professionals, and sustainability leaders who require a reliable and efficient infrastructure for data governance, performance measurement, and transparent reporting. Aeterra Workspace also recently became an official API submission participant with the ESG Data Convergence Initiative (EDCI), to help streamline ESG metric collection and reporting across portfolios.
See it in action
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• Japan's private markets have held steady in 2025 amid a surge in late-stage VC and PE carveouts, according to our latest Japan Private Capital Breakdown.
• The pharma biotools industry is on pace for an annual dealmaking record as VCs flock to emerging technologies for drug discovery, clinical development and more. Read the report
• CVC Capital Partners agreed to buy Smiths Detection, which makes airport security scanners, from the company's UK-listed parent for £2 billion (about $2.7 billion). Read more |
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| Secondaries, real assets see Europe grab record share of fundraising pie |
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By Emily Lai, Private Equity Reporter
Europe's share of global private capital fundraising hit an all-time high this year, with funds focused on secondaries and real assets recording some of the continent's largest closes.
As of the end of September, European private market funds collected $310.5 billion, representing 34.2% of the total global capital raised this year, according to PitchBook's Q3 2025 Global Private Market Fundraising Report.
Europe is the only major region to increase its share of global fundraising in 2025. North America still holds the largest share of private capital raised, although its portion fell from 61.5% in 2024 to 57.4% in 2025. |
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Europe's share of fundraising has grown since 2022, but certain asset classes have outperformed others.
One area experiencing strong growth is real assets—mainly infrastructure funds—as the Russia-Ukraine war has spurred investment in assets related to energy security. EQT raised a record €21.5 billion (around $23.3 billion) for EQT Infrastructure VI in March, beating its original €20 billion target.
The maturing secondaries market has also attracted more commitments, with four out of the 10 largest funds raised this year pursuing secondaries strategies. The largest fund close so far this year was Ardian's ASF IX, which reached its $30 billion hard cap in January.
Despite capturing a record share, the total value raised remains below the 2021 record of $457.7 billion due to lower overall fundraising levels. |
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Smart reads that caught our eye.
• Space pollution might be the biggest obstacle for Google's satellite data centers. The abundance of sunlight in low Earth orbit addresses energy needs but creates another environmental problem. [Fortune]
• Native Americans in Arizona are fighting back against copper mining on sacred land. As the data center boom heightens the demand for copper, domestic resources are falling into the spotlight. [The Financial Times]
• ADP's latest report paints a grim picture of the US job market. In November, private companies cut 32,000 jobs, and small businesses are suffering the most. [CNBC] |
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