Schroders Capital Private Equity Lens Q2 2026
A nascent recovery continued into early 2026, but the asset class faces renewed macro headwinds and valuation pressures. Small and mid-cap buyouts continue to offer entry discounts and resilient NAV growth – and secondaries momentum persists.
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Schroders Capital’s Private Equity Lens provides a data-driven guide to the global private equity market each quarter, covering fundraising, deal and exit activity, and valuation and performance trends across buyouts, growth and venture capital, and global secondaries.
Key takeaways from the Q2 2026 Private Equity Lens are:
Fundraising improved modestly in Q1 2026 compared to Q4 2025. This was driven by venture and growth capital strategies, with buyout and overall final close volumes softening as LP selectivity persists.
Deal value rose sharply despite a lower count, driven by a small number of high-value venture, growth and mega buyout deals. Underwriting remains selective against a backdrop of renewed macro, valuation and AI/software risks.
Exit value rose sharply, led by a small number of very large trade sales, while a lower exit count points, again, to a selective reopening and persistent exit backlog. Small/mid buyout exits retained broader exit routes and flexibility, while more recent high-profile mega-listings could help to open the IPO window further in coming quarters.
Small/mid buyouts continued to price at a meaningful discount to both large-cap buyouts and small-cap public markets, supporting disciplined deployment and a focus on operational value creation in a flatter multiple environment.
Venture capital valuations rose across all stages and now sit above 2021 levels, with this run-up sharpest in later-stage and AI-concentrated deals. Selectivity remains key.
Small/mid buyouts continue to show strong long-term performance, with sourcing discipline and value creation key to outcomes.
Secondaries remain a key liquidity channel as liquidity demand persists, with 2026 off to a good start in fundraising terms. Both continuation investments and traditional LP-led secondaries reached new records in investment volumes in 2025.
AI is reshaping PE underwriting through broader sourcing, deeper diligence and stronger investment challenge. Read more about how AI could enhance return distribution by improving outcomes at the tails by reading our recent paper.
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