Global private equity dealmaking rebounded sharply in 2025, with buyout deal value rising 44% year-on-year to $904bn and exit value climbing 47% to $717bn, according to Bain & Company’s latest Global PE Report.

Both metrics marked the second-highest levels on record, signalling renewed momentum after three subdued years. However, Bain cautions that the recovery was heavily concentrated in megadeals. Just 13 transactions above $10bn accounted for $274bn, or 30%, of global buyout value.

Hugh MacArthur, chairman of Bain’s global Private Equity practice, said: “The good news is 2026 is shaping up as promising. Interest rates are moving south, if slowly, deal pipelines are well stocked. With stock prices high and the economy robust – and barring another ‘black swan’ jolt to the system – the conditions for deal and exit activity are rosier than for some time.”

Despite the rebound, liquidity constraints persist. Distributions to LPs as a percentage of NAV remained at 14% in 2025, below 15% for the fourth consecutive year. The industry is holding approximately 32,000 unsold companies valued at $3.8tn.

Buyout fundraising fell 16% to $395bn, marking a fourth straight annual decline. Investors are increasingly favouring the largest and most consistent GPs, intensifying competition for capital.

Against this backdrop, Bain argues that the economics of private equity have structurally shifted. During the 2010s, a typical deal required around 5% annual EBITDA growth to generate a 2.5x multiple over five years. Today, firms must deliver roughly 10% to 12% annual EBITDA growth to achieve the same return.

Rebecca Burack, head of Bain’s global Private Equity practice, said: “Generating attractive returns now requires significantly more operational improvement and revenue growth. We call this ’12 is the new 5′. In practical terms, deals that once delivered competitive returns with modest EBITDA growth now require sustained, double-digit growth.”

Bain concludes that the industry has reached an inflection point. With leverage lower, borrowing costs at 8% to 9%, and valuation multiples elevated, value creation must increasingly come from operational execution rather than financial engineering.

While the 2025 rebound eases pressure, the report suggests that only firms capable of consistently generating EBITDA growth and articulating a differentiated strategy will outperform in the next cycle.

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