Private Equity deal activity in H1 2025 recorded its strongest first-half performance in three years, with deal volume rising by 11% and value up 6% YoY. The market remains cautious, as evidenced by a 48% drop in average deal size, yet Pre-IPO rounds defied the trend with a 21% increase in size and a 129% surge in value compared to full-year 2024.
Venture Capital remained stable but showed signs of strategic recalibration. While early-stage deals saw compressed valuations and slowing activity—Series A rounds dropped to 48% of 2024 levels—later-stage deals gained momentum. Series C volumes exceeded 2024 totals, and Series D reached 85%, underscoring investor preference for startups with clear scale trajectories.
M&A activity sustained a sharp rebound, with H1 2025 deal volume reaching its highest level in five years—up 12% over H2 2024 and 39% higher than all of 2023. Domestic transactions led the surge, accounting for over 80% of all deals. Small-ticket M&A activity (<$5 mn) saw strong traction, with 346 deals representing 92% of 2024’s total volume. Meanwhile, large-ticket deals ($100 mn+) accounted for 68% of total disclosed value in just six months.
PE exits declined sharply, with deal volume at 25% and value at only 8% of 2024 levels. Open market sales accounted for 100% of disclosed exit value, indicating subdued appetite for strategic sales or secondary deals. Information Technology led exit activity by volume, while Financials topped exit value, reinforcing the public market’s role as the primary liquidity channel in a risk-averse environment.
Equity Capital Market activity saw a broad-based pullback following a record 2024. Deal volume stood at 40% and value at just 21% of the previous year’s totals. IPOs maintained dominance, contributing 70% of all deals, while Rights Issues gained share. Despite the slowdown, IPOs raised $5.7 billion—more than half of ECM proceeds—highlighting selective investor interest in new listings.
