Private equity deal activity ran into another mid-cycle stall as a fresh wave of shocks in 2026 widened pricing gaps and slowed both buying and selling.
In a report entitled "Control the Controllable, Weather the Rest: Private Equity Midyear Report 2026," Bain & Company said the pullback has been broad, with only a narrow slice of top-tier assets still attracting premium bids.
The report noted that early 2026 started with improving momentum for buyouts before three disruptions hit in quick order: an AI-driven shakeout in software, strains tied to redemptions in private credit, and a conflict involving Iran that pushed oil higher.
Bain also described wider bid-ask spreads, more cautious investment committees, and weaker exit traction as uncertainty returned.
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