Global Private Equity Investment Hit $1.5 Trillion Despite Slowdown In Deal Activity

New Delhi: Global private equity (PE) investment hit $1.5 trillion in the first three quarters of 2025, despite a slowdown in deal activity, a report said on Tuesday. Regarding India's PE landscape, the report from global consultancy KPMG said that the country remains a highly attractive destination for global investors, underpinned by strong macroeconomic fundamentals, favourable demographics, and rising domestic consumption.

The global PE deal volume has positioned itself for a potential four-year high if momentum continues into Q4, KPMG noted. 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, the report noted.

In Q3 2025, total deal value reached $537.1 billion across 4,062 transactions, up from $512 billion in Q3 2024, despite a much lower volume of deals, the report said. The number of deals decreased from 5,032 to 4,062 in Q3 2025 from the previous year. As of Q3 2025, PE investment in India stood at $14.9 billion across 217 deals, a decline from $26.3 billion across 289 deals in 2024 due to geopolitical and trade uncertainties, particularly around the US tariff policies.

KPMG, however, said that 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 specialised manufacturing. The strength of India’s capital markets has also made it a favourable environment for IPO exits, further enhancing its appeal, the consultancy firm noted.

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