Q2’26 Pulse of Private Equity

PE investment in the US holds steady, with $545 billion in investment at mid-year

In the first half of 2026, the US continued to see strong PE investment, with $545.1 billion at mid-year, well within reach of 2025’s total of $1.1 trillion. Deal volume, however, was significantly down, with 3,926 deals compared to 2025’s total of 9,350. The rolling twelve-month totals echoed these trends, showing a modest dip in PE investment from $1.2 trillion to $1.1 trillion, and a more substantial decline in deal volume from 9,095 to 8,568 deals between Q1’26 and Q2’26.

PE investment in the US continued to be driven by a small cohort of large, marquee deals as investors took an intensely disciplined approach to dealmaking; during Q2’26, they focused heavily on scaled, highly resilient businesses with clear growth visibility.

^{Source: Pulse of Private Equity Q2'26 KPMG analysis of global private equity activity as of 30 June 2026. Data provided by PitchBook}

AI and energy infrastructure attract largest PE deals in Q2’26

During Q2’26, PE investors showed major interest in critical economic infrastructure, including AI infrastructure and energy.
The top three deals of the quarter centered around these two themes, including the $10 billion launch of integrated AI infrastructure company Helix Digital Infrastructure by KKR, the $6 billion secondary buyout of electric utility Cleco Holdings by Stonepeak and Bernhard Capital Partners, and the $4.5 billion acquisition of EDF’s renewable energy assets by KKR.

The energy sector has been particularly attractive to PE investors in the US so far in 2026, driven by investors looking to make large, long-term bets on the space given the historic power surge expected from AI data center development and the pressing need for energy generation, grid modernization, and secure domestic energy supplies and infrastructure. At the end of Q2’26, PE investment in the energy and natural resources sector stood at $90.2 billion, on pace to achieve a more than decade high.

Legal services increasingly on the radar of PE investors

In recent years, many PE investors in the US have focused on the professional services industry, using roll-ups as a mechanism to drive value through consolidation and operational improvements.
In the first six months of 2026, legal services gained significant ground on the radar of PE investors given its high degree of fragmentation in combination with its perceptibly defensive revenue streams. PE investors in the US also view the sector as a resilient harbor capable of performing well across economic cycles, making it a good target for buy-and-build activities.

Many mid-market legal firms in the US have also not yet embraced back office and technology transformation, presenting an opportunity for PE firms to drive significant operational efficiencies, such as through the implementation of AI tools able to enhance and streamline client-facing delivery models. Capital partner models also provide legal firm partners an opportunity to monetize their equity while using PE capital to fund aggressive lateral hiring, the acquisition of specialized boutiques, and regional scaling.

Trends to watch for in Q3’26

Looking ahead to Q3’26, PE investment in the US is expected to remain robust but highly selective as sponsors continue to focus on larger, high-conviction deals. PE investment in AI, data and energy infrastructure is likely to remain high through the remainder of the year. Exit activity will likely continue to recover, although this recovery may take some time given the significant backlog and current concentration on high-quality assets. Secondaries and continuation vehicles will continue to be essential as a means to provide liquidity.

The resurgence of the middle market in the US is the fundamental engine keeping broad private equity deal flow moving right now, driven by highly accessible private credit and a long-awaited alignment on valuations. The structural gridlock that stalled the market over the last two years has finally broken. Sellers have digested the new macroeconomic reality and adjusted expectations, while buyers sitting on a record amount of dry powder are highly motivated to deploy.

Donald Zambarano

US Head of Private Equity

KPMG in the US