The private equity industry is still stuck.
The M&A rebound in 2026 has done little to clear the PortCo backlog. Slower exits are weighing on distributions and reshaping the industry:
Holding periods remain stretched beyond five years
Secondaries are booming as LPs seek liquidity
Fundraising has slowed and is increasingly concentrated
Read the full breakdown below.
This Week’s Data
Tight Exits
As 2026 enters its final stretch, private equity is hampered by a familiar problem: exits.
Megadeals and strategic consolidation helped fuel an M&A rebound during the year, with deal value rising 15% through August.1
But the recovery hasn’t resolved private equity’s growing backlog of portfolio companies.
According to S&P, private equity’s median holding period was 5.3 years as of June 2026. Holding periods have trended upward since 2022, with most investments now held beyond the typical five-year target.2
Deals are stuck on valuations. Sponsors are hesitant to accept lower prices, especially for businesses acquired at peak valuations during '21–'22. At the same time, buyers are grappling with macro uncertainty.
The result is slower exits and a growing backlog, delaying distributions to LPs and forcing the industry to adapt.
Secondaries Boom
Private equity’s struggles have driven rapid growth in secondaries.