Global private equity saw strong growth in 2025, with the value of buyout deals and divestments reaching the second-highest level in history. In Spain, this trend translated into a 51% increase in the value of buyout transactions compared to 2024, according to the 17th edition of Bain & Company’s Global Private Equity Report.
In the Spanish market, this growth was driven mainly by larger transactions, particularly in the telecommunications and higher education sectors, while the total number of deals remained largely stable.
Bain notes that, after three years of “relative stagnation,” the global sector has reached a turning point, potentially marking the start of a new growth phase from 2026 onward. However, despite 2025’s figures approaching the historical highs of 2021 and 2022, recovery has not been uniform across funds or regions, reflecting a structural shift in the industry.
In Europe, buyout deal value rose 11% year-on-year to $235 billion, led by Germany, Austria, and Switzerland (DACH), the Nordic countries, and sectors such as healthcare, energy, and utilities. Divestment value increased 64%, to $240 billion, mainly due to strategic sales, though deal volume remained flat.
Liquidity remains a challenge, with average holding periods approaching seven years, reflecting a tougher exit environment than in previous cycles.
Globally, buyout deal value increased 44% year-on-year to $904 billion, supported by improved financing conditions and greater confidence in credit markets. However, recovery was highly concentrated: only 13 megadeals (transactions over $10 billion) accounted for 30% of total value, 11 of them in the United States.
In Spain, large strategic deals were the main driver of growth, with services and energy sectors regaining prominence, while smaller transactions were more fragmented.
Bain warns that the sector has reached a “structural inflection point.” Funds face higher competition for capital, greater return expectations from investors, and a more complex financial environment than during the “golden decade” of the 2010s.
Today’s context is characterized by higher interest rates, persistently high valuations, slower exits, and much more selective investors. Operational costs for fund managers are also rising due to increased investment in sector specialization, technology, artificial intelligence, and professionalization of fundraising.
In Europe, buyout fundraising fell 43% year-on-year to $89 billion, reflecting pressure on capital flows. Bain notes that the coming decade is unlikely to replicate the favorable conditions of the previous one.
According to Bain partner Cira Cuberes, “The outlook for 2026 is promising, but beneath the positive headlines lies a more uneven reality. In this new phase, funds will need to significantly enhance their value-creation capabilities, have truly differentiated strategies — what we call their ‘secret sauce’ — and demonstrate with data their ability to execute from day one.”
Bain summarizes the new environment as “12 is the new 5.” During the 2010s, a typical deal required roughly 5% annual EBITDA growth to reach target returns. Today, achieving the same results requires an average annual EBITDA growth of 10–12%.
This means value creation will rely much more on operational improvement and real business growth than on multiple expansion or financial leverage. Funds will need to strengthen value-creation capabilities, identify opportunities earlier, and implement what Bain calls full potential due diligence, a comprehensive approach that evaluates revenue, operational, and technological levers capable of delivering a significant performance jump in portfolio companies.
This approach involves moving from validating the seller’s assumptions to building an investment thesis based on the total potential of the asset, combining commercial, operational, and technological analysis, and incorporating a ready-to-execute value creation plan from day one.
After a year that began amid macroeconomic uncertainty, activity rebounded strongly in Q3, recording the strongest quarter in sector history in terms of deal value. Globally, while aggregate value was high, the total number of deals fell 6% year-on-year to 3,018, confirming that growth was mainly driven by large transactions.
The uptick in exits provided some relief to the sector. In Spain, total divestment value rose 316% year-on-year in 2025, with underlying growth of 186% even after excluding the year’s largest deal. Recovery extended across all exit channels, including IPOs after several years of limited activity.
Globally, only seven mega-divestments accounted for 22% of total exit value, which reached $717 billion, while total exit numbers fell slightly, 2% year-on-year, returning to pre-pandemic levels.
Fundraising fell for the fourth consecutive year in 2025. While global private equity raised $1.3 trillion (in line with 2024), buyout fundraising dropped 16% to $395 billion. Many investors prioritize established managers with consistent performance, intensifying capital competition and raising return requirements. Higher operational costs and greater reliance on co-investment further increase the need to differentiate.
Bain concludes that success will depend on clearly differentiated strategies supported by data and the ability to execute value-creation plans from day one.
Despite the more demanding environment, private equity remains attractive long-term: top-quartile buyout funds continue to outperform public markets across multiple time horizons
cloud technology axon
Geopolitical uncertainty and the economic problems in the United State...
