Private equity in 2026 is investing selectively and paying less than corporate buyers. EY counts 10% fewer PE acquisitions in the first half of 2026 than a year earlier, with aggregate value roughly flat, and Mergermarket puts global sponsor investment at $333.2 billion, down 6% [1][2]. The largest take-private deals of the year so far in DataPorium's records were priced at a median of about 11.6 times EBITDA, below the roughly 13.9 times paid in large corporate deals [3]. As of July 28, 2026, the market is shifting away from software and toward infrastructure, energy and healthcare.
How active is private equity in 2026?
The main trackers agree that sponsors are active but cautious:
- EY: PE acquisitions fell 10% in the first half of 2026, while deal value was roughly flat at about $341 billion, compared with about $353 billion a year earlier [1].
- Mergermarket: global financial sponsor investment fell 6% to $333.2 billion, while strategic buyers accounted for 76% of all M&A volume [2].
- DataPorium: private equity and venture deals from January through April fell 11.9% to 7,559 transactions [3].
DataPorium's value total for the same category rose sharply, to $366.7 billion from $195.1 billion, but that jump is driven by very large venture rounds for AI companies rather than by buyouts [3]. Mergermarket, for example, notes that technology deal value in the half was led by a $122 billion funding round for OpenAI [2]. Deal counts are the better guide to buyout activity, and they are lower.
The software reset
The decline is concentrated in one sector. EY reports that the value of technology-focused PE deals fell 50% from a year earlier, while non-technology deals rose 9% [1]. Its chart shows technology deal value dropping from about $72 billion to about $36 billion. In the United States, where large software take-privates dominated recent years, PE deal value fell 25% and volumes 13% [1]. EY attributes this to a higher bar for companies whose growth and pricing power could be disrupted by AI.
What are take-private deals valued at in 2026?
A take-private is a deal in which a financial buyer acquires all the shares of a listed company and removes it from the stock market. DataPorium records the following large sponsor-led or investor-led public-company offers announced from January through April 2026 [3]:
| Target (buyer) | Value | EV/EBITDA | 1-day premium |
|---|---|---|---|
| AES (EQT, GIP, CalPERS and partners) | $42.2B | 12.1x | negative 13.2% |
| Universal Music Group (Pershing Square) | $64.7B | 23.2x | 77.7% |
| Intertek (EQT) | $14.3B | 13.9x | 37.5% |
| Schroders (Nuveen) | $13.0B | 6.7x | 29.1% |
| InPost (Advent and partners) | $11.8B | 11.1x | 17.3% |
| Nexi (CVC, unconfirmed) | $15.0B | 7.7x | n/a |
The median EV/EBITDA across these six deals is about 11.6 times [3]. That compares with a median of about 13.9 times for seven large US corporate acquisitions announced in the same period, as DataPorium covered in its review of the largest 2026 deals. The gap reflects how buyouts work: sponsors fund part of the price with debt, so they need a lower entry multiple to reach their target returns.
Premiums depend on the target's recent price
Premiums varied widely. Universal Music Group's 77.7% one-day premium came in a contested offer, and Intertek's 37.5% premium came in a hostile approach [3]. AES shows the opposite case: its shares had risen on reports of a sale, so the final price was 13.2% below the prior day's close, though still 3.9% above the 30-day average [3]. The largest US take-private of the period, AES, was valued at 12.1 times EBITDA and 3.45 times sales, typical for a regulated utility with steady cash flow [3].
Exits and valuations: the other side of the market
Exits have held up better than new deals. EY reports that announced exit value rose 9% in the first half, with trade sales to corporate buyers making up 71% of exit value, up from a typical share of about two thirds [1]. Mergermarket puts global sponsor exit volume at $386.7 billion, up 7% [2]. Corporations that are buying scale are also buying PE-owned companies.
Sellers are becoming more flexible on price. In EY's survey of general partners, 90% said they would accept some discount to their original underwriting value in exchange for immediate liquidity, most often 6% to 10% [1]. Valuation remains the main barrier: 36% of GPs cite prices that do not meet underwriting expectations as the reason assets are not sold [1].
Where sponsors plan to invest next
Healthcare services is cited by 50% of GPs as a top growth area and digital infrastructure, including data centers, by 44% [1]. Power and energy infrastructure, aerospace and defense, and AI-resilient software each drew 28% [1]. Looking ahead, 72% of GPs expect deployment to increase over the next six months and 56% expect exits to accelerate [1].
From a market perspective, the discipline is healthy. Sponsors that walk away from richly priced software and pay moderate multiples for cash-generating assets are protecting the pension funds and endowments that provide their capital. The counterpoint is that lower PE activity means fewer buyers for private companies, which can slow the recycling of capital back to investors. Readers can review sponsor deals by date and type in DataPorium's investment screener.
Private equity in 2026 is buying fewer companies at lower multiples than corporate acquirers, while exits to strategic buyers keep capital moving.
Key takeaways
- PE acquisitions fell 10% in the first half of 2026 by count, with value roughly flat at about $341 billion, according to EY.
- Technology-focused PE deal value fell 50%, while non-technology deals rose 9%.
- Large 2026 take-private deals were priced at a median of about 11.6 times EBITDA, below the roughly 13.9 times paid by corporate buyers.
- Exit value rose 9%, and sales to corporate buyers made up 71% of it.
- Most GPs expect deployment and exits to increase over the next six months.
Frequently asked questions
Is private equity deal activity down in 2026?
By number of deals, yes: EY counts 10% fewer PE acquisitions in the first half of 2026 than a year earlier. Total deal value was roughly flat, because non-technology deals rose while technology deals fell by half.
What multiple do private equity firms pay in a take-private?
Among the largest take-private and investor-led offers announced from January to April 2026, the median was about 11.6 times EBITDA, with a range from about 6.7 to 23.2 times.
What was the biggest take-private deal of 2026 so far?
Among US targets, the take-private of AES by a group including EQT, GIP and CalPERS was the largest recorded through April, valued at about $42.2 billion including debt.
Why are private equity firms avoiding software deals?
EY reports that sponsors are applying a higher bar to software companies because AI could disrupt their growth, pricing power and long-term defensibility, which raises the risk in underwriting those deals.
