Shifting Trends in Private Equity: 2025 and Beyond

Shifting Trends in Private Equity

The landscape of private equity (PE) investing has evolved dramatically in recent years.

This article examines those trends.

Hold Times in Private Equity have changed dramatically in the last ten years

Hold times, from signing a deal to exit, in PE have followed a U-curve over the past decade from about 5.9 years in 2014, falling to 4.5 years in 2018, then climbing to a record high of 7 years in 2023 as exit markets stalled. While 2024 saw improvement (down to 5.9 years), hold times remain above pre-pandemic levels.

Median (Avg) Hold Times in Years

What’s Driving These Shifts?

Several factors extended hold times:

  • Federal Rate Hikes: Higher financing costs delayed M&A and exits.
  • Valuation Gaps: Sellers held out for past values as buyers became selective.
  • Weak IPO Market: Public exits became scarce, lengthening hold times.
  • Alternative Liquidity Tools: Dividend recaps and continuation funds enabled partial exits and portfolio flexibility.

The Baseline: 2025–2027 Outlook & Wildcards

Baseline forecast:

Hold times should settle in the 5–6 year range as inflation cools and market backlogs clear.

Wildcards:

A recession or renewed rate hikes could again extend holds. Widespread adoption of evergreen or 15-year vehicles/long-dated funds (e.g., KKR, CVC, Partners Group) might segment the market into “core” (3-5 yrs) and “build-to-core” (10-15 yrs) holding strategies.

Other changing private‑equity trends

Broader PE shifts: fund‑raising has declined for three straight years; add‑on deals and continuation funds now dominate activity along with increased sector specialization, and AI‑enabled value‑creation.

What’s Next for M&A and Private Equity

Consensus among analysts is for a significant increase in M&A activity in 2026, fueled by founder-owned companies coming to market and a rebound in private equity exits. The pandemic‑era exit drought and interest‑rate shock stretched private‑equity hold times to record highs, but data suggests the pendulum is swinging back as markets stabilize and new liquidity tools mature. At the same time, the industry is reinventing itself digitally, operationally and structurally to compete in an AI-driven, increasingly efficient, yet higher‑cost, slower‑growth world. Firms are preparing by investing in digital operations, compliance, and flexible fund structures to capture value in a more competitive, regulated environment.

Key Takeaways

  • Hold times peaked in 2023 and are easing, but not back to pre-pandemic lows.
  • Add-on deals and specialized strategies increasingly dominate PE.
  • The outlook for 2026 is robust. Expect a wave of M&A as markets clear.

Note: Figures cited are median or average buy‑out holding periods (signing‑to‑exit). Hold time excludes dividend recaps and partial exits.

Sources: Bain, PitchBook, S&P Global, CBH, Wall Street Journal, Chronograph, Accenture.


Thinking of Selling Your Business or Planning a Strategic Acquisition? At ClearRidge, we specialize in advising business owners on mergers, acquisitions, and exit strategies. Contact us for a confidential consultation to explore your options and maximize your company’s value. Schedule a Consultation Today  

Explore ClearRidge Services in cities closer to you

Increasing Merger & Acquisition Activity in this Election Year

A prevailing assumption is that a slowdown in mergers and acquisitions (M&A) occurs from October to December of an election year (and the following year depending on the party that is elected), but is that actually the case? Let’s first take a look at the last two previous election cycles...

Carlson Company acquired by Continental Materials Corporation

Carlson Company of Tulsa, OK has been acquired by Continental Materials Corporation of Chicago, IL. Carlson Company is a family-owned company, formed in 1958, renowned for manufacturing precision large diameter steel flanges, rings, and disks up to 162” O.D, 132” height, and weighing 50,000 pounds. ClearRidge advised the owners of Carlson on the sale.
Carlson Company Tulsa, OK acquired

Surprises to selling a company in COVID-19

We had several acquisitions working in March when everything shut down and were not expecting to initiate any new engagements until late summer. However, we did start discussions on a new acquisition at the end of May. Surprisingly to us, the response was overwhelmingly positive and, as of last week, we have nine bona fide offers to acquire this company, five of which are at or above pre-COVID market value. How could this be?

Conroe Concrete acquired by SRM

Conroe Concrete (Yancey Ready-Mix) has been acquired by SRM Concrete. The buyer, SRM Concrete is among the fastest-growing concrete companies in the US, with over 200 locations across 14 states in the Eastern US, expanding South, acquiring ten concrete companies in 2018 and exceeding that growth again in 2019. ClearRidge advised the owners of Conroe Concrete (Yancey Ready-Mix) on the sale.

M&A Outlook for Winter 2019/20; Q3 Transaction Report

In this report, ClearRidge reviews the region’s most active industry sectors and provides an outlook for Winter 2019/20. Aerospace, Chemicals, Construction, Engineering, Energy, Healthcare,...

Is 2020 the right time to sell my company?

We were recently asked by a client if current market conditions are right for the sale of his company. There are two parts to the question: “current market conditions” and “for his company.”  The primary driver of the decision should be an analysis of his particular, unique business.  Current market conditions are an external driver of his company's performance and also impact the price a buyer will pay for his company, but they are only one factor of many factors that impact business valuation and timing for a sale.

M&A Outlook for Fall 2019; Q2 Transaction Report

In this report, ClearRidge reviews the region’s most active industry sectors and provides an outlook for Fall 2019. Aerospace, Chemicals, Construction, Engineering, Energy, Healthcare,...

M&A Outlook for Summer 2019; Q1 Transaction Report

In this report, ClearRidge reviews the region’s most active industry sectors and provides an outlook for Summer 2019. Aerospace, Chemicals, Construction, Engineering, Energy, Healthcare,..

M&A Outlook for Summer 2018 and Q1 Transaction Report

In this report, we review our region’s most active industry sectors and give an outlook for Summer 2018. Aerospace, Chemicals, Construction and Engineering, Energy, Healthcare, ...
Show All