Private Equity PErspectives Podcast
Hear BDO and industry perspectives on private equity strategy, deal activity and value creation.
Private Equity Faces Tight Competition for Quality Deals
Abundant dry powder and a limited supply of quality assets are putting upward pressure on deal prices and prompting firms to rethink how they compete.
According to BDO’s survey of 400 U.S. private equity leaders, longer hold periods are increasing the focus on value creation and exit readiness. With 80% holding portfolio companies for five years or longer, firms are refreshing growth plans, while 41% identify private credit as their primary funding source.
Capital alone may not be enough in this environment. Firms also need the talent and capabilities to apply AI across the deal lifecycle, strengthen portfolio company performance and articulate a credible growth story for the next owner.
Private equity is entering a new era. The year began with cautious optimism, but inflation, interest rate risk, and valuation gaps have made deal making more complex. The 26 PE deal landscape is defined by too many buyers pursuing a limited pool of quality assets, creating pressure on pricing, structure, and deal execution. BDO survey found that 82% of respondents expect deal prices to rise over the next twelve months. At the same time, exit pressure continues to build. 80% of respondents reported hold periods of five years or more, up from 63% in 2025. As hold periods lengthen, PE firms are refreshing growth oriented value creation plans focused on add on acquisitions, technology, talent, and pricing strategy. AI is also reshaping the PE investment thesis, influencing how firms assess opportunities from sourcing through exit. The firms that recognize what has changed and adapt their play book will be better positioned for what's ahead. See what's reshaping the PE playbook in BDO's 2026 private equity survey.
Download the report for insights on deal competition, portfolio value, financing, talent, AI and exit opportunities.
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