Global private equity deal value climbed 19% to $2.6 trillion in 2025, with buyout activity reaching nearly $1.8 trillion, according to McKinsey's Global Private Markets Report. Large transactions drove the recovery, as deals above $500 million surged 44% to $1.1 trillion, marking a record year for mega-deals. Electronic Arts became the latest target in a $55 billion take-private.

Despite the surge in transaction value, overall deal count fell 5%, reflecting a market where capital concentrated into fewer, larger assets. North America led the rebound with buyout value up 29%, accounting for 57% of global activity. Median buyout entry multiples climbed to 11.8x EBITDA, a new high, as sponsors competed for scarce, resilient assets. However, returns deteriorated, with buyout funds underperforming public markets for the third consecutive year.

Fundraising became more selective, declining 17% to $616 billion globally. Capital concentrated into larger managers, with funds above $5 billion capturing 35% of total fundraising in 2025. Despite weaker short-term returns, limited partner conviction remains intact, with 70% planning to maintain or increase allocations. The industry now operates in structurally tougher conditions, requiring disciplined underwriting and operational execution to drive performance.