Global Overview - Global private equity (PE) activity showed caution in Q2 2025, with deal volume declining from 4,527 in Q1 to 3,769, the lowest since Q3 2020. Total investment dropped from $505.3 billion to $363.7 billion [9][54]. - The Americas attracted 59% of global PE investment in Q2 2025, totaling $214 billion, while Europe, the Middle East, and Africa (EMA) saw $117.4 billion, and Asia-Pacific (ASPAC) recorded $20.85 billion [10][56]. Regional Insights - In the Americas, investment fell from $319.8 billion to $213.9 billion, with the US dominating at $202 billion across 1,608 deals. Canada and Latin America were significantly impacted by tariff uncertainties [2][56]. - The EMA region experienced a decline in investment, but the UK saw growth, with $36.8 billion in Q2 2025, up from $24.8 billion in Q1 2025. The UK accounted for 25-30% of total deal value in Europe [28][56]. - ASPAC investment decreased from 282 deals to 220, with a notable drop in China, while Australia showed growth [2][56]. Sector Performance - Technology, Media, and Telecommunications (TMT) led global PE investment in Q2 2025, attracting $247.2 billion, although this was lower than the previous year. Industrial manufacturing and energy sectors also performed well [12][15]. - Life sciences investment reached $6.9 billion in H1 2025, surpassing the total for all of 2024, while healthcare attracted $79.3 billion [15][63]. - The automotive sector saw a significant decline, with only $12.3 billion in H1 2025 compared to $39.8 billion for all of 2024 [15]. Exit Activity - Global PE exit value rebounded to $501.9 billion in H1 2025, indicating a potential for the best year since 2021. IPOs and acquisitions were strong, with healthcare and energy sectors driving this growth [59][60]. - Notable exits included CARE Hospitals at $8.5 billion and Pactiv Evergreen at $6.7 billion, highlighting a focus on high-quality assets [60][62]. Future Trends - Investors are expected to focus on high-quality assets and domestic companies in Q3 2025, with ongoing attention to tariff policies and corporate performance influencing deal activity [2][68]. - AI infrastructure investments are anticipated to grow, particularly in data centers, as PE firms seek to enhance the performance of existing portfolio companies [38][64].