Insights 2026 | View on Private Equity

In Insights 2026, we observe a private equity landscape marked by slower distributions and longer holding periods, balanced by resilient company performance in the lower and middle market. With fundraising increasingly concentrated in mega-funds, opportunities are strongest where valuations are lower, earnings growth is healthier and manager skill has greater impact. In this environment, selective access, disciplined underwriting and thoughtful global diversification remain essential.

Key Takeaways

• Liquidity is limited as exits lag, even as many portfolio companies continue to grow earnings.
• Lower and middle market strategies offer more attractive forward returns than large-cap buyouts.
• Fundraising remains concentrated, increasing the value of strong manager selection and access.
• Key focus areas include lower middle market managers, selective co-investments and additional exposure to Europe, Japan and secondaries.