Private equity returns are facing mounting pressure as new research from Hamilton Lane reveals underperformance against public benchmarks across one-, three-, and five-year horizons. The $82.7 billion Alaska Permanent Fund Corporation is now reconsidering its private markets allocations, with Hamilton Lane reporting that only 36 percent of managers expect private markets net returns to outperform by at least 300 basis points over the next three vintages.

Despite the gloom, EQT delivered a blockbuster exit, selling a 14.3 percent stake in Swiss pharma business Galderma for over $6.2 billion in the largest PE-backed block trade globally. The consortium has now fully exited its roughly 77 percent stake in Galderma, generating more than $25 billion in aggregate sales since the company's IPO 19 months ago. This marks another mega-exit for EQT, which posted record exits last year generating about €34 billion in realisations.

Meanwhile, the US mid-market shows signs of resilience as a Solve report found healthier BDC performance in Q4 2025 compared to Q3. While 43 percent of companies showed price deterioration, 56 percent showed appreciation, with software and tech sectors leading price appreciation at 28.3 percent. This turnaround contrasts with earlier concerns about stress in the private credit market.