Private Equity 101

Private Equity: 1H 2026 in 10 Points • Global PE investment reached US$1.0 trillion in H1 2026, demonstrating resilience despite geopolitical and macroeconomic uncertainty. • Investors became increasingly selective, prioritizing fewer, larger, high-conviction deals, pushing rolling deal volume to a five-year low. • The Americas remained the largest investment destination (US$579.2B), while EMA hosted three of the world's four largest PE deals in Q2. • Energy & Natural Resources emerged as the standout sector (US$149.2B), driven by energy security concerns and AI's growing power requirements. • AI reshaped capital allocation. Investment shifted away from software toward AI infrastructure, data centers, industrial manufacturing and enabling technologies. • Exit values remained resilient, but exit volumes stayed subdued. Sponsors increasingly relied on secondaries and continuation vehicles to provide liquidity. • The Middle East conflict and Strait of Hormuz disruptions reinforced the importance of energy resilience, influencing sector and geographic investment decisions. • India continued attracting PE capital through family-owned businesses, healthcare, financial services and precision manufacturing, although elevated valuations remained a challenge. • PE firms increasingly focused on risk-adjusted returns, favoring transparent markets with strong long-term structural growth. • Looking ahead, the industry is watching US IPO market reopening, while AI infrastructure, energy transition and digital infrastructure remain the strongest investment themes for H2 2026.