PE investment globally hits $1.5 trillion in first three quarters of 2025 despite slowdown in deal activity, according to KPMG’s Private Equity Pulse
- Q3’25 sees $537.1 billion in global PE investment across 4,062 deals
- Infrastructure sees $126.3 billion PE investment globally—already a three-year high
At the end of Q3’25, global PE deal volume was $1.5 trillion—on pace to reach a four-year high should investment remain steady through Q4’25. The buoyant investment is notable given the significant decline in deal volume—from 15,083 deals in the first three quarters of 2024 to 13,574 in the first three quarters of 2025.
After some pullback in PE investment in Q2’25—driven largely by geopolitical tensions and uncertainties related to US tariffs—Q3’25 saw global PE investment reach $537.1 billion according to KPMG’s Q3’25 Pulse of Private Equity.
“AI is incredibly hot right now—and PE investors across regions are looking for ways to get in on the action,” said Gavin Geminder, Global Head of Private Equity, KPMG International. “We’re seeing a lot of interest in everything to do with AI infrastructure—including data centers and the energy generation that will be required to support AI in the future. It’s a really exciting area—and one that’s only likely to grow over the foreseeable future.”
Q3’25—Key global Highlights:
- Global PE investment in Q3’25 was $537.1 billion—up from $512 billion during Q3’24, despite a much lower volume of deals—4,062 in Q3’25 compared to 5,032 in Q3’24.
- PE investment in the Americas was robust in Q3’25, with $322.9 billion in deal value—up from $306.1 billion in Q3’24. The US accounted for $300.2 billion of this total—up from $283.8 billion in Q3’24.
- PE investment in the EMA region was $178.3 billion in Q3’25—up from $145.4 billion during the same quarter of 2024, while PE investment in Asia was just $30.6 billion—a substantial decline from the $42.9 billion seen in Q3’24.
- The value of PE deals with cross border participation was $750 billion at the end of Q3’25—a significant increase over 2024’s results and just shy of the pace required to match the $1.1 trillion high seen in 2021.
- Global PE exit value was $832 billion at the end of Q3’25—well-positioned to be the second largest annual total in a decade after 2021.
Private equity market trends in India
Despite a temporary slowdown in private equity (PE) activity in 2025, India remains a highly attractive destination for global investors, underpinned by strong macroeconomic fundamentals, a large and youthful population, and rising domestic consumption. As of Q3’25, PE investment in India stood at $14.9 billion across 217 deals, a decline from $26.3 billion across 289 deals in 2024. This dip is largely attributed to geopolitical and trade uncertainties, particularly around U.S. tariff policies. However, investor sentiment remains optimistic, with many global PE firms continuing to deepen their presence in India, often acting as business builders rather than passive investors. The maturing ecosystem is reflected in the growing size of India-focused funds and the increasing breadth of sectors attracting capital—from technology and healthcare to financial services and specialized manufacturing. The strength of India’s capital markets has also made it a favorable environment for IPO exits, further enhancing its appeal.
Key highlights:
· Current Investment Climate:
o PE investment in India reached $14.9B across 217 deals by Q3’25.
o On track to be the slowest year since 2019 in value and since 2020 in volume.
o Decline driven by geopolitical concerns, especially U.S. tariff policy uncertainty.
· Long-Term Fundamentals Remain Strong – India continues to be viewed positively due to its large population, strong GDP growth, and status as the world’s fastest-growing major economy.
· Shift Toward Business Building:
o Global PE firms are increasingly establishing local teams and offices.
o Preference for majority stakes to drive operational value and growth.
o PE investors see themselves as active partners in scaling Indian businesses.
· Evolving Investment Strategies:
o Use of platform strategies to consolidate niche sectors.
o Roll-up strategies to build scale and profitability.
o Cross-portfolio synergies are being explored to enhance value creation.
· Fundraising Momentum – India-focused fund sizes are growing significantly.
· Sectoral Diversification – Strong interest in SaaS, AI-enabled manufacturing (especially aerospace and defense), healthcare, life sciences, and financial services (including fintech and insurance).
· Robust IPO Environment:
o Strong stock market performance in 2025 has enabled high-multiple exits.
o Domestic institutional investors are showing strong appetite for PE-backed IPOs.
Commenting on the India findings, Nitish Poddar, Head of Private Equity, KPMG in India said, “People today talk about the AI revolution. The biggest revolution that’s happening for me sitting here in India is the private equity in India revolution. India has incredibly strong macros, a growing population — the largest working age population in the world — and some of the highest savings rates in the world. All of this makes India a very attractive domestic consumer story. That’s a big draw for PE investors — along with the significant amount of opportunity there is for PE players to come in, invest money, and make money by building up India-based businesses.”
Looking ahead, the current dip in PE investment in India is expected to be short-lived. As geopolitical uncertainties stabilize, investor confidence is likely to rebound, unlocking greater deal flow and capital deployment. With a maturing ecosystem, rising fund sizes, and a broadening sectoral base, India is well-positioned to attract sustained PE interest. The country’s compelling macroeconomic narrative, coupled with a vibrant entrepreneurial landscape and improving exit environment, reinforces its status as a key growth market for global private equity.
