#USA #New York #Private Equity #Operational Efficiency #Termgrid

Private Equity Firms Shift Focus as Competition Intensifies

In the ever-evolving landscape of private equity, firms are increasingly vying for market share by emphasizing operational efficiency, specialized knowledge, and robust relationships over sheer size. As highlighted in the recent Private Capital Survey by Termgrid for the second half of 2026, this shift comes amidst a cautious market sentiment where optimism varies significantly between the EMEA region and the Americas.

Key Findings of the Termgrid Survey

The survey reveals several critical insights into the state of private equity:

• - Market Sentiment: A cautious outlook prevails, with only 38% of respondents feeling optimistic about future conditions, while a striking 51% anticipate stability in market conditions. Interestingly, respondents from the EMEA region show a 45% optimism rate compared to just 35% in North and South America, where macroeconomic factors dominate market expectations.
• - Continuing Liquidities: Private equity firms are anticipating that the introduction of Continuation Vehicles will spearhead the next wave of liquidity solutions, with 33% of participants citing this trend. Other methods gaining traction include hybrid fund financing structures and NAV financing, reported by 20% and 19% of respondents, respectively.
• - Rise of Non-Bank Lenders: The dominance of non-bank lenders in fund financing is expected to rise, with 53% forecasting their increasing market share, particularly in Europe (64%) compared to 43% in North and South America.

Specialization Over Size

A noteworthy trend emerging from the survey indicates that companies are now differentiating themselves through expertise rather than size. For instance, those working with firms having an EBITDA exceeding $50 million are focusing on liquidity solutions (23%) and flexible terms (21%), while smaller firms under $50 million emphasize specialized investment strategies (20%) and co-investment opportunities (19%) to attract capital. This shift emphasizes the growing importance of tailored approaches in securing investments.

Technology Investments and Operational Priorities

A major insight from the survey is the transition of technology investments towards enhancing operational efficiency. Almost 40% of respondents see workflow automation as the most significant opportunity to boost team capabilities. Although artificial intelligence (AI) continues to gain momentum, only 16% have incorporated it into their enterprise-wide knowledge management. Key barriers to broader AI adoption include accuracy (32%), integration challenges (25%), and data security concerns (20%).

Dipish Rai, co-founder and CEO of Termgrid, noted that the intensifying competition in the private capital sector means companies must distinguish themselves through operational excellence, specialist knowledge, and stronger client relations. He emphasized that firms capable of effectively integrating technology into their workflows will be best positioned to thrive in this competitive environment.

About the Survey

The survey conducted in June 2026 captured a diverse array of opinions from professionals in the private capital sphere. Among the respondents, 56% were from North and South America, 42% from EMEA, and 4% from APAC. The participants represented a broad spectrum of stakeholders, including sponsors (33%), private credit funds (29%), bank lenders (32%), and others (6%). The surveyed sponsors and private credit fund representatives reported their managed assets as follows: over $10 billion (34%), $5–10 billion (20%), under $5 billion (43%), and evergreen structures (3%). For more detailed information, visit Termgrid's Private Capital H2 2026 Outlook.

About Termgrid

Termgrid is a leading software platform specifically designed for private capital markets. Developed by industry experts, it aims to eliminate inefficiencies in the funding process and streamline workflows for all transaction participants, enhancing efficiency and clarity at every stage. Currently, over 1,600 institutions and 30,000 finance professionals utilize Termgrid for managing their financing activities and participating in transactions. With offices in London and New York, Termgrid continues to innovate in the private equity sector. Find out more at Termgrid's Website.