Private Equity and Venture Capital Facts & Figures, Second Quarter 2026 (Cambridge Associates)

Summary

• US PE funds have returned 8.7% and 11.7% over the past three- and five-year periods, trailing public equity market returns.p.2
• LPs allocated $336B to new US PE funds in 2025, well off the pace seen between 2019-24.p.2
• US venture capital generated a pooled net IRR of 21.1% in 2025 and 14.9% over the prior ten-year period.p.3
• European PE and VC returned 10.7% and 17.2% in USD terms over the trailing four quarters, versus 3.6% and 9.7% in euros.p.4
• Asia PE fundraising reached $47B as of 2Q, exceeding the $35B raised in 2025.p.5
• The Cambridge Associates Private Credit Index generated an 8.8% annualized IRR over the past five years, roughly 400 bps above the mPME.p.6

Key insights

1. After $1.1T of US buyout and growth equity deals in 2025, activity slowed almost 20% QOQ in 1Q.p.2
2. EBITDA purchase price multiples for large US buyout transactions decreased to 9.6x in 2Q, below the five-year average of 10.9x.p.2
3. US VC funds have raised $72B YTD, almost matching the full-year 2025 figure.p.3
4. North American VC deal volumes hit $269B in 1Q.p.3
5. Europe-based PE funds have raised EUR 39B in 2026 so far, while VC raised EUR 8.2B in 1H 2026.p.4
6. Trailing four-quarter Asia PE deal activity is a robust $196B.p.5
7. The top quartile of managers in the Cambridge Associates Credit Opportunities Index posted a 15.0% pooled five-year return.p.6
8. Direct lending deal flow declined by 40% in 1Q 2026 QOQ as questions persist about the impact of AI on software companies.p.6