#USA #Raleigh #Private Equity #Cherry Bekaert #Mergers and Acquisitions

The Surge of Private Equity Deals in 2025

In a remarkable turn for the private equity landscape, the annual report by Cherry Bekaert reveals that deal values have soared past $1.2 trillion in 2025. This substantial figure marks just the second occasion in history that such buyout values have eclipsed the trillion-dollar mark, following the peak levels observed in 2021.

This assessment is encapsulated within Cherry Bekaert's fifth annual year-end Private Equity Industry Report, which elaborates on the underlying market dynamics and strategic shifts that bolstered private equity activity in the past year. With fiscal parameters continuously adjusting, the report points to an invigorated climate for mergers and acquisitions, specifically noting several trend-defining sectors.

Notable Findings from the Report

Among the major conclusions drawn from the report are:

• - Record Megadeals: The report revealed that transactions exceeding $1 billion reached unprecedented values, aggregating to $568 billion from a total of 150 megadeal transactions.
• - Exit Activity: There has been a significant uptick in exit activity, demonstrating double-digit growth that breaks from a long-standing period of stagnation.
• - Dominance of Add-ons: Add-on acquisitions emerged as the preferred strategy for private equity firms, although a potential decrease in interest rates might stimulate a rise in platform buyout opportunities.
• - Corporate Divestitures: The report indicates that numerous companies are divesting non-core assets, creating favorable conditions for private equity firms to engage in lucrative carve-outs.
• - Fluctuating Fundraising: Fundraising has experienced a downturn, with 2025 marking the least active year since 2020, reflecting the challenges faced by firms in securing new capital amidst the fluctuating economic climate.
• - Dry Powder Dynamics: Notably, private equity firms are sitting on an estimated $1.1 trillion in dry powder, accentuating the dichotomy between an active deal environment and subdued fundraising efforts.

Scott Moss, Partner and Financial Services Industry Leader at Cherry Bekaert, emphasized the long-term implications of these trends. “After several years of navigating through turbulence, private equity leaders are primed for a breakout in 2026,” he stated.

Looking Ahead: Insights for 2026

As the market begins to stabilize, the report’s 2026 outlook paints a picture of continued momentum. The emphasis on operational value creation and digital transformation is set to shift focus away from traditional leverage-based gains. This structural evolution is expected as firms adapt to a more pro-business climate alongside a gradually improving interest rate environment.

The findings of the Cherry Bekaert report offer a valuable perspective for stakeholders in the private equity realm. With evolving investor appetites and emerging opportunities from market recalibrations, it presents a prime environment for both innovative deal-making strategies and the sustainable growth of private equity firms moving forward.

Through 2026 and beyond, the industry is encouraged not just to participate, but to innovate and adapt, laying the groundwork for long-term success and leveraging the upcoming opportunities.