Key Takeaways

Activity has rebounded, but remains concentrated. Deal and exit activity recovered meaningfully in 2025, though growth was driven disproportionately by North America and a narrow set of large transactions.

Liquidity remains the core constraint. Despite improved exit volumes, distributions remain historically low and holding periods continue to extend, limiting capital recycling.

Capital is abundant, but increasingly concentrated. Elevated dry powder and fundraising concentration among top managers are creating a more competitive environment.

Value creation is shifting toward operations. Returns are increasingly dependent on operational improvement rather than leverage or multiple expansion.