Debevoise & Plimpton Releases 2026 Private Equity Midyear Outlook
The first half of 2026 saw unexpected developments in the private equity market, marked by AI-driven repricing of software businesses and geopolitical volatility. Despite initial optimism about increased deal activity due to ample dry powder and improved financing conditions, capital deployment became more selective as investors recalibrated strategies amid macroeconomic uncertainty. Fundraising remained concentrated among larger managers with strong track records, while secondaries and continuation vehicles provided liquidity in a constrained exit environment. M&A activity focused on add-ons and smaller transactions where valuation certainty was highest. In real estate, demand-driven sectors outperformed due to structural undersupply and durable income growth. Regulatory changes are also shaping the landscape as U.S. and European regulators push for expanded access while increasing governance expectations. AI is influencing both opportunity and risk in areas such as software asset defensibility and generative content ownership.
Topics: M&A activity macroeconomic environment private equity regulatory changes