Private Equity Assets Hit Record While Fundraising Slows
Private equity is closing 2025 at record scale, even as the industry grows more selective and concentrated.
- Private equity assets reached a record 9.9 trillion dollars, with dry powder still near historic highs.
- Deal value rebounded, but volume fell as firms focused on larger transactions at record multiples.
- Exits improved and secondaries surged, while fundraising declined and became more concentrated among top managers.
Assets under management have climbed to new highs, deal values are recovering, and megadeals are back in focus. At the same time, fundraising is tightening and capital is flowing toward a shrinking circle of dominant managers.
Record Assets and Persistent Dry Powder
Global private equity assets rose to an unprecedented 9.917 trillion dollars in 2025. North America continues to lead the market, with assets in the region reaching 5.64 trillion dollars by September.
Capital reserves also remain elevated. Dry powder peaked at 2.62 trillion dollars in July 2024. Although U.S. reserves began to decline in 2025 as firms accelerated deployment, global unspent capital is still hovering near record territory.
At the same time, the industry is sitting on an aging portfolio. More than 16,000 buyout-backed companies are now held for over four years, representing 52% of total inventory. That backlog is the highest on record and highlights the pressure on firms to generate exits in a more disciplined market environment.
Fewer Deals, Bigger Tickets
Investment activity rebounded sharply in value terms. Global private equity deal value climbed to 2.1 trillion dollars in 2025, marking a four-year high. However, deal count fell about 8% to just over 19,000 transactions. The message is clear – firms are choosing scale over volume, concentrating on fewer but larger transactions.
Purchase prices reflect that shift. Median buyout multiples reached a record 11.8 times EBITDA in 2025, underscoring continued competition for high-quality assets.
Sector performance has also set new benchmarks. Healthcare deal value surged to 191 billion dollars, exceeding its previous 2021 peak. Infrastructure investment reached 126.3 billion dollars by the third quarter of 2025, fueled by energy transition projects and growing demand for AI-driven data centers.
The year also delivered the largest buyout ever recorded. A consortium led by Silver Lake Partners completed a 56.6 billion dollar take-private of Electronic Arts, marking a historic moment for the industry.
Exits Rebound, Secondaries Surge
Liquidity conditions improved materially in 2025. Global exit value climbed to 1.3 trillion dollars, the second-strongest annual figure in the past decade. That rebound has been critical for firms looking to return capital after several slower years.
The secondary market has become a major release valve. Capital calls by secondaries funds hit 83.4 billion dollars in 2024 and continued to accelerate as limited partners sought liquidity solutions.
Cross-border activity also reached a new peak. International transactions totaled 1.13 trillion dollars in 2025, surpassing the previous record set in 2021 and signaling renewed global confidence in large-scale dealmaking.
Fundraising Splits the Industry
Despite the surge in assets and deal value, traditional fundraising weakened sharply. Total capital raised fell to 407.6 billion dollars in 2025, down 33% year over year and one of the weakest showings in recent history.
What fundraising did occur was heavily concentrated. The top 10 managers captured their largest share of U.S. fundraising in more than a decade. Capital is increasingly gravitating toward established megafunds, leaving smaller and mid-sized players facing a far more competitive environment.
Taken together, the data paints a picture of an industry that is larger and more powerful than ever, but also more polarized. Private equity is operating at record scale, yet success is increasingly defined by access to capital, the ability to execute megadeals, and the capacity to navigate a growing backlog of aging assets.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
