Private equity dealmaking hit its slowest second quarter since 2020, with Q2 2026 seeing 937 deals and 560 exits, down modestly from 1,067 deals and 636 exits in the prior quarter. The TMT sector experienced the steepest decline in deal volume compared to last year, while healthcare stood out with a median deal size exceeding $1 billion. The largest transaction involved Blackstone, TPG Global, and others acquiring Hologic for $18 billion.

Market turbulence from AI disruption and global events has dampened activity, though historical trends suggest H2 typically outperforms H1. VSS Capital Partners made a strategic move, taking a minority stake in Los Angeles-based engineering firm Cordoba, aligning with a generational reinvestment in U.S. infrastructure. VSS principal Sai Parepuly highlighted strong demand driven by data center expansion and infrastructure modernization, forecasting over $2 trillion in annual U.S. construction spending.