Global private equity deal value up 19% in H1 2025

"The choppiness of the market lends itself when you're doing control acquisitions or larger transactions. When financing markets aren't cooperating, that's harder. But when they are, those deals can get done," Marcellino said.

Private equity firms are executing large transactions to deploy some of the substantial capital they have raised, according to Simon Grimshaw, partner for corporate and finance at Hogan Lovells. There is about $2.5 trillion in dry powder, down slightly from the record set in 2023.

"There is still huge pressure on managers to deploy capital. They've raised these great big funds. They need to do something with that money, and they need to [find] a way to price their deals appropriately and factor in the cost of debt into those deals."

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Bridging valuation gaps

Buyers and sellers have started bridging their expectations on asset prices, said James Cross, partner for corporate and finance at Hogan Lovells. Sellers have become more aware of cost and tax pressures, while buyers aim to close more deals.

Additionally, dealmakers have become more active in minority transactions.

"[Minority deals] give them an ability to take up the valuation, but not have to write as big a check," Marcellino said.

Top sectors

The technology, media and telecommunications sector had the most deal activity in June, with 354 private equity-backed announced transactions.

Within the sector, application software had the highest number of transactions at 181, followed by systems software at 39 and interactive media at 26.

Largest deals

Six deals with transaction values of at least $1 billion were announced in June.

In the largest transaction of the month, an investor group that includes The Carlyle Group Inc. offered to buy oil and natural gas company Santos Ltd. for $23.86 billion.

The largest round of funding in June was the $2.5 billion series G round for autonomous weapon hardware and software company Anduril Industries Inc. The Founders Fund LLC led the round.

KKR & Co. Inc. led private equity-backed M&A deals in the first half of 2025, participating in 15 announced deals.

Companies that KKR is acquiring include Osttra Group Ltd., Karo Healthcare AB and Zenith Energy Ltd.

KKR said earlier this year it expects more dealmaking in 2025, with a focus on take-privates, particularly in overlooked and undervalued segments of the middle market, as well as corporate carve-out opportunities.

Outlook

Economic and geopolitical uncertainties such as wars and tariffs will remain headwinds for private equity deals in the second half, Hogan Lovells' Grimshaw said.

"Businesses have started to understand better the regulatory environment that [tariffs] exist in," Grimshaw said. "We are now pricing for those things."