The war of duties and renewed geopolitical tensions they had a negative impact also on the sector of Private equitywhich has slowed down investments, waiting to understand how the geopolitical and economic framework will evolve. This is what emerges from the “Pulse of Private Equity” report by KPMG, according to which it takes stock of the quarterly trends in the sector. globally and in the main regions of the world.
In the first quarter 2025the global private equity investments, including the announced operations, have fallen to 445 billion dollars (-4.1% Compared to the approximately 464 billion dollars of the fourth quarter of 2024). If the value of the completed or scheduled operations has fallen, the number of operations has decreased even more drastically from 4,960 at 3,760 (-24.2%) in the same time span.
“The beginning of the year was characterized by a general slowdown in the investment cycle and divestments, due, among other things, to the high macroeconomic and geopolitical volatility activated by the US policies, “he comments Stefano CervoKPMG partner, Head of Private Equity, “as regards the Outlook – he adds – despite the optimism of some on Europe, it seems to us to be prevalent among the operators a waiting approach, due to the significant system uncertainties”.
A different geographical distribution
The exception are the Americas show a greater momentum Compared to other regions, with a solid increase in investments of about 240 billion dollars late 2024 a 287 billion dollars In the first quarter 2025, despite the numerical drop in the number of operations from 2,350 to 1,868.
There Ema Region (Europe, Middle East, Asia)on the other hand, recorded a considerable collapse both of the value of the investments, which descend from the 170 billion dollars of the last quarter 2024 to 109.2 billion In the first quarter 2025, both of the number of workers, which goes from 2,184 to 1,555 operations.
Only in the region Asia Pacific Investments in are grown slightlywhile remaining very content both in terms of volumes and of deal, going from 29 billion dollars in 288 operations in the fourth quarter 2024 to 37.5 billion dollars and 226 operations in the first quarter 2025.
The sectors that attract multiple investments
The TMT sector (technology, media and telecommunications) attracted the largest share of private equity investments for a total value of 117.4 billion dollars, followed by industrial sector with 66.4 billion dollars and fromEnergy and natural resources With 61.5 billion dollars, also and the latter exceeded the total investments of 2024 in the first quarter. Infrastructure and transportIn the meantime, they recorded 44.4 billion dollars of investments only in the first quarter of 2025, almost half of the 90.6 billion dollars of those recorded throughout 2024.
It remains caution for the future
In the second quarter 2025 The private equity activity could be Still modest. The first signs of the second quarter 2025. KPMG underlines – highlighted the intensity of‘uncertainty linked to tariff policies USA of new implementation, with changes that occur on a frequent basis. Concerns about impacts and retaliation could freeze the operation of private equity up when there is no greater certainty on tariff strategies. The sectors that have ahigh exposure to the risk of duties they will undergo the greatest weight of any contraction by PE investors, including the manufacturing, life sciences, consumer goods and retail sale. Other more isolated and resilient areas to duties will probably attract most of the investment activities, including businesses to businesses, health and infrastructure.
