Key Takeaways
- • North American private equity deals took a median 274 days to close in Q2 2026, roughly nine months, versus 200–220 days in 2018–2021, according to S&P Global's With Intelligence data.
- • Median private equity holding periods now exceed five years, compared with roughly 4.0–4.5 years in 2018 and 2019, creating a growing backlog of mature portfolio companies awaiting exit.
- • Private equity fundraising reached $312 billion in H1 2026, more than halfway to the 2025 total of $490 billion, with the top 20 funds accounting for $171 billion.
- • Secondaries fundraising exceeded $50 billion in H1 2026, just over 15% of total private equity fundraising, while H1 secondaries transaction volume hit a record $121 billion per Evercore.
- • First-half 2026 deal activity exceeded second-half 2025 levels across 30 subindustries, with industrials accounting for one-third of those sectors showing increased activity.
Summary
Private equity dealmaking in 2026 is being shaped by a tension between deploying new capital and generating liquidity from existing portfolios, according to a With Intelligence by S&P Global report. Deal execution has slowed: North American acquisitions of all sizes, sectors and structures took a median 274 days to close in Q2 2026, up from roughly 200–220 days between 2018 and 2021. Holding periods have lengthened in parallel. Following the 2021 dealmaking boom and a slowdown in M&A activity amplified by macroeconomic uncertainty since 2024, median holding periods now typically exceed five years, against 4.0 to 4.5 years in 2018 and 2019.
Deal activity is nonetheless accelerating in pockets. First-half 2026 activity across North American targets surpassed second-half 2025 levels in 30 subindustries, and 12 recorded at least a doubling in volume, five of them within industrials. Infrastructure, logistics, and aerospace and defense are also strengthening, as geopolitical uncertainty and ongoing conflicts shape investment priorities. Industrials is the only sector with a median holding period below five years, at 4.9 years, which the report links to buyer demand tied to defense, infrastructure and data-related industries. Business services and technology, by contrast, now show the longest median holding periods at 5.3 years.
Portfolio aging is creating uneven exit pressure. Industrial goods, healthcare providers and services, and consumer durables and apparel have high concentrations of assets held at least seven years. Software, construction, facility management and IT services are more concentrated in assets held four to six years. Fund-level data shows partial progress: between the end of 2024 and the end of 2025, RVPI as a share of TVPI declined across most fund groups while DPI increased, though the report notes the backlog remains, particularly for recent vintages.
Fundraising has recovered but remains concentrated. Managers closed $312 billion in H1 2026, with the top 20 funds, including vehicles from KKR, EQT, Clearlake and Blackstone, accounting for $171 billion. Secondaries remain a key liquidity channel: Coller International Partners IX ($17 billion) and Partners Group Secondary VIII ($9 billion) accounted for over half of the more than $50 billion raised in the segment. GP-led transactions represent around half of secondaries volume. Mega secondaries funds targeting at least $89 billion collectively include HarbourVest's $20 billion Dover Street Fund XII and CVC's sixth secondaries vintage targeting over $7 billion.
Allocator behavior reflects the liquidity squeeze. Large investors are deepening relationships with high-conviction managers and expanding co-investment programs; CalSTRS aims to co-invest one-third of its pacing target this year. Texas Teachers committed roughly 40% of its H1 private equity spend to new managers focused on small and mid-market buyouts. Detroit Police & Fire plans to commit up to a third of its annual private equity spend to secondaries on Hamilton Lane's advice. Growth equity interest has risen as pensions seek AI-linked exposure, though Lehigh University CIO Mike Gould described a 'profit-first' approach in contrast to the market's tendency toward unprofitable companies at elevated valuations.
Deal activity is nonetheless accelerating in pockets. First-half 2026 activity across North American targets surpassed second-half 2025 levels in 30 subindustries, and 12 recorded at least a doubling in volume, five of them within industrials. Infrastructure, logistics, and aerospace and defense are also strengthening, as geopolitical uncertainty and ongoing conflicts shape investment priorities. Industrials is the only sector with a median holding period below five years, at 4.9 years, which the report links to buyer demand tied to defense, infrastructure and data-related industries. Business services and technology, by contrast, now show the longest median holding periods at 5.3 years.
Portfolio aging is creating uneven exit pressure. Industrial goods, healthcare providers and services, and consumer durables and apparel have high concentrations of assets held at least seven years. Software, construction, facility management and IT services are more concentrated in assets held four to six years. Fund-level data shows partial progress: between the end of 2024 and the end of 2025, RVPI as a share of TVPI declined across most fund groups while DPI increased, though the report notes the backlog remains, particularly for recent vintages.
Fundraising has recovered but remains concentrated. Managers closed $312 billion in H1 2026, with the top 20 funds, including vehicles from KKR, EQT, Clearlake and Blackstone, accounting for $171 billion. Secondaries remain a key liquidity channel: Coller International Partners IX ($17 billion) and Partners Group Secondary VIII ($9 billion) accounted for over half of the more than $50 billion raised in the segment. GP-led transactions represent around half of secondaries volume. Mega secondaries funds targeting at least $89 billion collectively include HarbourVest's $20 billion Dover Street Fund XII and CVC's sixth secondaries vintage targeting over $7 billion.
Allocator behavior reflects the liquidity squeeze. Large investors are deepening relationships with high-conviction managers and expanding co-investment programs; CalSTRS aims to co-invest one-third of its pacing target this year. Texas Teachers committed roughly 40% of its H1 private equity spend to new managers focused on small and mid-market buyouts. Detroit Police & Fire plans to commit up to a third of its annual private equity spend to secondaries on Hamilton Lane's advice. Growth equity interest has risen as pensions seek AI-linked exposure, though Lehigh University CIO Mike Gould described a 'profit-first' approach in contrast to the market's tendency toward unprofitable companies at elevated valuations.
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