Schroders Capital Private Equity Lens Q3 2026

Private equity is showing selective momentum, but concentrated deal activity and constrained liquidity make manager selection and disciplined deployment essential.

• Fundraising increased in Q2 2026, led by buyout strategies, while venture and growth fundraising eased and overall final closes remained broadly flat.
• Deal value stayed elevated in the first half of 2026, supported by venture and growth, but deal count fell to its lowest level since Q3 2021; buyout activity was broadly stable.
• Exit values normalised after Q1’s surge in mega-deals, with public listings improving but sponsor-to-sponsor activity weakening, so liquidity remains constrained.
• Small and mid-sized buyouts offered a 3.0x entry-multiple discount to large deals and continued to lead cumulative buyout performance, while performance dispersion remained significant.
• Venture valuations reached new highs, particularly through late-stage AI premiums, and secondaries reached record volumes in H1 2026; continuation investments are expected to lead 2026 activity.

Takeaway: Investors should favour selective deployment in small and mid-sized buyouts and assess managers carefully, while treating high venture valuations, concentrated software exposure in 2021–22 US large buyouts and limited liquidity as key risks.