The tenth annual McKinsey report on private markets paints a portrait of an industry that has reached maturity. After a rebound in deal activity in 2025, structural challenges assert themselves: record-high entry multiples, longer holding periods, and operational value creation becoming imperative.
Three years of haze, finally a clear sky. In 2025, global private equity regained its color. Mega-deals are back, IPOs are resuming, and the value of transactions surpasses the highs of 2021. Yet McKinsey’s new report, “Global Private Markets Report 2026,” invites looking beyond the numbers.
Beneath the surface, the playing field has transformed in a lasting way. Future profitability will no longer come from favorable market conditions, but from deliberate strategic choices and flawless execution. For general partners (GPs) as for limited partners (LPs), the moment is no longer about speed, but about properly preparing the vehicle to face a steeper and more technical road.
After three lean years, the private equity industry has rebounded with growth in 2025. Buyout and growth deals above $500 million jumped 44% to reach $1.1 trillion, erasing the previous 2021 record. The total value of buyout transactions, across all formats, rose 20% to nearly $1.8 trillion, the second-best figure in history.
Positive signals are piling up: exits rose by more than 40%, driven by almost a doubling of IPO volume. Mega-deals, those transactions above $2.5 billion, resurfaced with éclat. The year 2025 even saw the largest deal in the sector’s history, namely the acquisition of video game publisher Electronic Arts by a consortium of funds for $55 billion.
Nevertheless, this spectacular rebound should not mask a more complex reality. The total number of transactions, however, fell by 5%, a sign that the rebound is driven by larger deals, but fewer in number. Buyers pay more, but they buy less.
