2026 Private Equity Survey (BDO)

Summary

• Financial services and insurance leads planned PE investment activity over the next one to two years, identified by 60% of respondents.p.7
• Acquiring new platform assets remains the primary strategic objective for 62 per cent of Australian PE firm respondents.p.8
• In response to economic uncertainty, 68 per cent of respondents reported an increased focus on bolt-on acquisitions.p.9
• Higher cost of capital and higher cost of goods and services are impacting forecast earnings for 75 per cent of portfolio company CFOs.p.10
• Deal completion delays occurred in 80 per cent of transactions, with unresolved SPA terms cited as the primary cause by 38 per cent of respondents.p.15
• Active ownership has expanded, with 72 per cent of PE firms increasing overall support to their portfolio companies.p.21
• 68 per cent of survey respondents describe current exit market conditions as challenging, requiring a stronger performance narrative.p.29

Key insights

1. Global PE fundraising reached US$191 billion in Q2 2026 despite the number of funds closed falling to 275.p.5
2. Dry powder as a proportion of AUM for Australian private capital has fallen to its lowest ratio in at least a decade at just over 25 per cent.p.8
3. High competition for quality businesses is reported by 64 per cent of respondents, keeping asset valuations elevated.p.9
4. Financial performance and quality of earnings remain the leading due diligence priority for 42 per cent of PE firms.p.13
5. Loss of key talent is identified as the single largest source of post-completion value leakage by 42 per cent of respondents.p.16
6. Internal talent availability is cited by 47 per cent of portfolio companies as the top constraint on achieving strategic goals.p.23
7. Improving productivity is seen by 64 per cent of PE firms as the primary value creation opportunity for AI across portfolio companies.p.26
8. 68 per cent of respondents identify evidencing operational performance through robust KPIs as the top area requiring support prior to exit.p.31