In 2025, private equity dealmaking rebounded sharply. But distributions to LPs are still stuck.
The industry’s headline recovery doesn't tell the full story:
Distributions are at decade lows
Deal activity is increasingly selective
Recovery is being driven by fewer, larger deals
Read the full breakdown below.
This Week’s Data
Global Private Equity Report 2026 (McKinsey)
Weak Distributions
Private equity's biggest challenge is still distributions.
Per MSCI, the distribution rate for global private equity was just 8% in 1Q'26.
The weak quarter extended a four-year liquidity drought. Since the Fed began raising rates in 2022, PE distributions have been stuck at roughly half of pre-2022 levels.
A Misleading Recovery
The weak distribution data comes despite what appeared to be a strong recovery in the industry. According to McKinsey, global buyout deal value jumped 20% in 2025, and total PE exit value grew 41%.
But headline numbers mask what's happening beneath the surface. Private equity dealmaking is becoming more selective.