Core Insights - The private equity industry is experiencing longer hold periods and fewer but larger deals, which may represent a "new normal" for the sector [1] Group 1: Deal Value and Trends - Total private equity deal value reached $2.6 trillion globally in 2025, marking a 19% increase from 2024 and the second-highest value on record [2] - The largest private equity deal in history, valued at $55 billion, involved taking video game maker Electronic Arts private, significantly contributing to the overall deal value [2] - Despite the increase in deal value, the total global deal count fell by 9% in 2025, continuing a trend of declining deal counts since a peak of approximately 80,000 deals in 2021 [3] Group 2: Holding Periods and Backlog - Private equity firms are holding assets longer, with a backlog of about 16,000 portfolio companies owned for over four years in 2025, up from 13,000 in 2024 [4] - The average holding period for a typical company in a general partner's portfolio is now over six and a half years, which is significantly longer than historical averages [5] Group 3: Liquidity Solutions - The use of continuation vehicles, where private equity firms sell assets back to themselves, has gained popularity, with the value of such liquidity solutions tripling from $35 billion in 2020 to $115 billion in 2025 [5] - Approximately 14% of all sponsor-backed exits are conducted through continuation vehicles, indicating a shift in exit strategies [5] - The liquidity for investors remains limited, with trends like secondaries and continuation vehicles becoming more established in the private equity landscape [6]